[upchuck]

Think of it: the government reports inflation of 1.5% while the real rate of inflation is 5% or higher, and it’s obvious what is happening here.

That's already happening, due to the poor way the COLA is figured.

For 2013, we're getting a measly 1.7% increase. Meanwhile:

• my grocery bill for 2012 is up way more than that
• my Medigap premium is up by 20% for 2013
• my Medicare C premium is up by 15% for 2013
• my Medicare A&B premium is up 5% for 2013

And we get a lousy 1.7%? Why do they even bother? And under the proposal we'll get even less.

Pardon my "senior" rant :)

[kabar]

•my Medicare A&B premium is up 5% for 2013

Why are you paying a premium for Medicare Part A? You couldn't qualify for Medicare Part A due to a lack of contributions when working?

Medicare premiums for Part B only cover 25% of the costs of the program. The other 75%, by law, comes from the General Fund. In FY 2011, the General Fund paid $222 billion to cover Medicare Parts B and D (SMI) costs. Eventually, if not reformed, Medicare will consume the entire federal budget.