The Social Security Trustees are projecting another low cost-of-living adjustment this year. The number, which will be finalized next Tuesday, is currently projected to be 0.2%.
Under Medicare’s “hold harmless” provision, individuals receiving both Medicare and Social Security will not experience a rise in premiums if the Social Security COLA is not enough to cover the increase in premiums. To qualify as “held harmless” in 2017, beneficiaries must receive Social Security in November and December this year and have their Medicare premiums deducted from their Social Security check. They also must not earn enough money to qualify for Medicare’s income-related monthly adjustment amount, or IRMAA.
Given these restrictions, Medicare beneficiaries may be tempted to claim their Social Security now, to avoid a spike in premiums. Generally speaking, this is not a good idea. Social Security’s delayed retirement credits are more valuable than the lower Medicare premiums, and high-net-worth earners—the ones with the most to gain by delaying their benefits—do not qualify for the hold-harmless provision in any case.
Mary Beth Franklin supplies more analysis here: Social Security timing can affect Medicare premiums.