Today, Oct. 14, 2005 I had my performance review with the social security program and because I handed in a steady performance this year, I will receive a 4.1% Cost of Living (COLA) raise beginning Jan. 1, 2006. I'm thanking you because you are supporting me with your regular contributions from you paychecks (you donate 6.2% of every dollar earned for my social security program). The raise is based on the Consumer Price Index (CPI) which reported the biggest one month jump upward in 25 years. Undoubtedly the big reason for the increase is energy prices.
I ask you "how many of you will get a 4.1% increase in wages next year?"
But wait a minute. I've been recently informed that I will pay $10 more per month for the medicare health benefit. Double that because you mother's insurance will rise a like about. That is a $240 per year increase in cost.
And then we've also been notified that a new Medicare prescription drug program is available starting Jan. 1, 2006 for a meager charge to social security of $40 per month per person. Your mother and I will have to pay a total of $80 per month for drugs coverage or another $720 per year.
Also the supplemental health insurance we carry will offer an enhanced drug program "dove-tailing" medicare at some cost. We don't know what that will be. Probably another $300-$500 per year.
We presently do not use many drugs so paying for a new drug program is added cost. Maybe someday it may be a significant benefit?
So the way I've got this figured, I got a 4.1% raise which you will pay for, I will pay more for medicare insurance, I will pay for a drug program which I don't presently need, my supplemental drug insurance cost will go up and I will end up with a net outflow of cash. Huh?
So I thank you Grasshoppers for the significant raise...... I think!
Love,
Dad