Social Security and Medicare are two pillars of the nation’s safety net. Social Security was signed into law by FDR on Aug. 14, 1935.

Ida May Fuller was born on Sept. 6, 1874, and received the very first Social Security payment on Jan. 31,1940. It was check number 00-000-001 for $22.54.

Medicare was signed into law by LBJ on July 30, 1965. Harry Truman was Medicare beneficiary number one and Bess number two. Their coverage began on July 1, 1966. The Part B premium was $3 per month taken from their Social Security payments.

The only thing constant with these two programs has been change. The year 2022 promises major changes. Some are locked in and others will happen if Congress passes President Biden’s Build Back Better proposal. High on that list is allowing Medicare to negotiate with the pharmaceutical companies to lower drug prices.

Social Security will increase by 5.9% in 2022. That is the largest increase in decades.

Medicare Part B premiums will increase by 14.5% in 2022. That is the largest in the history of the program. In 2022, the standard premium will be $170.10 up from $148.50 this year. Part B is indexed, as of 2003, and the Income Related Monthly Adjustment Amount will range from $238.10 to $578.30, depending on a past tax return.

The reasons for the Part B premium rise are complicated.

1. Rising health care costs.
2. Increased utilization.
3. COVID-related expenses.
4. A $3 per month charge related to last year’s Part B increase.
5. Uncertainty concerning new drugs, such as Aduhelm.

An example that may help show the connection between these two programs. A Social Security beneficiary receives $700 per month and pays Part B. His SS benefit increases by $41. His Part B increases by $22. His monthly increase is $19. Ouch. Not keeping up with inflation.

The government giveth with one hand and taketh with the other.

You can expect the political class to congratulate themselves on the giving and remain silent on the taking.

That is Politics 101.