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Allsup Finds Healthcare Costs Consuming Larger Part of Fixed Incomes
Date:11/21/2008

People relying on Social Security benefits see more of their limited income going to healthcare.

Belleville, IL (Vocus) November 21, 2008 -- With 2009 Medicare open enrollment here, many individuals are realizing they will face higher healthcare costs leaving less money for other essentials, according to Allsup, a leading provider of Social Security disability, financial and healthcare-related services to people with disabilities.

Despite Medicare Part B (outpatient services) remaining unchanged for 2009, costs for Part A (hospital) coverage are increasing moderately and Part D (prescription drug) premiums will experience a double-digit increase.

In fact, based on an analysis by Allsup, individuals relying on Social Security Disability Insurance (SSDI) are seeing health costs increasingly chip away at their limited income. For example, the Part B premium has increased from less than 3 percent of the average monthly SSDI benefit in 1983 to nearly 10 percent in 2008.

Analysis of Social Security Administration and the Centers for Medicare & Medicaid Services (CMS) data further shows that from 2000 to 2008, the average monthly SSDI benefit increased 33 percent, from $754 to $1,004. In that same period, the average monthly Part B premium jumped 112 percent, from $45.50 to $96.40. A person with long-term disabilities is eligible for Medicare 24 months after his date of entitlement to cash benefits,
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