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Medicare insurance premiums to rise 15%… but there is will be no increase in
Social Security benefits because of a decrease in the Consumer Price Index.
Social Security benefits and indexed to the CPI via a Cost of Living Allowance
formula (COLA), and this has led previously led to annual increases in benefits.

From the official website

How is a COLA calculated?
The Social Security Act specifies
a formula for determining each COLA. In general, a COLA is equal to the
percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical
Workers (CPI-W) from the third quarter of one year to the third quarter of the next. If there is no
increase, there is no COLA.

However, the Medicare budget is so out of balance that premiums have to increase in amount well in excess of
the CPI.

From the official Medicare website

Social Security will use the income reported two years ago on your IRS income tax return
to determine your premium (if unavailable, SSA will use income from three years ago). For
example, the income reported on your 2008 tax return will be used to determine your monthly
Part B premium in 2010. If your income has decreased since 2008, you can ask that the income
from a more recent tax year be used to determine your premium, but you must meet certain

The base premium is increasing to $96.40/month for individuals who pay via Social Security withholding or
$110.40 for those who don’t withhold. Here are the monthly surtaxes by level of Adjusted Gross Income in
dollars and expressed as a percentage of the basis premium.