Beating the COLA

I guess that by now everyone who is currently receiving Social Security benefits knows that there won't be any cost of living Adjustment (COLA) for 2016. This, in spite of the fact that all of the financial advisors whose columns I read are in agreement that the only reason for the lack of an increase is due to the decline in the price of oil.  They also are in agreement that oil and gasoline prices are a minute part of the budget for most seniors.

Grumbling aside, I want to share with you the means I used to get my COLA for 2016 without the help of the government gurus.  I hope that it might open the door for those of you who draw SS to also find some extra $$$ to supplement your monthly benefit.

It is a rather strange coincidence that the announcement about the lack of a COLA came almost simultaneously with the date on which Medicare Part D recipients are able to make changes to their prescription coverage for 2016.  It borders on being a great stroke of luck! 

I have started to receive solicitations via email and snail mail from insurers who want my business, and I'm certain you are getting them too.  Anyway, one that I got advertised a very low premium - one-third of my current one. 

I decided to go to Medicare.gov and see if my scrips were on their formulary.  I have two that are pretty high cost.  It turns out that they were on there along with all my other generic ones, so I did a cost comparison.  Well, I was pleasantly surprised by the results. The projected cost for all of my prescriptions was about $600 lower.

Obviously, my next action was to call the toll-free number, which put me in touch with a representative who enrolled me in less than an hour.  He also enrolled my wife in the same call.

Judy had a different problem with our current insurance than mine; her premiums are more than the cost of her prescriptions, and that premium was going to go up by about 18% next year.  Her enrollment was even more beneficial than mine.

Now, let's get back to that non-COLA that was announced last week.  With the savings we will get in premiums alone (not even the lower drug costs, mind you) it will amount to a 3.2% increase in monthly benefit for me and a hefty 8.2% for Judy.  Not bad when you consider that the past Social Security COLAs were under 2%.

If you are one of the senior citizens on Social Security and Medicare Part D, I urge you to log on to medicare.gov and try a cost comparison for your current provider and those on the website in competition for your business.  You might also be pleasantly surprised by the results. You have until December 7th to change providers, so don't delay.