Despite many media reports predicting that the Social Security COLA increase would be offset by higher Medicare Part B premiums, the Centers for Medicare & Medicaid Services (CMS) announced that the standard monthly Medicare Part B premium will be $99.90 in 2012, $15.50 less than in 2011. However, because the premium for most Medicare beneficiaries has been frozen at $96.40 (the premium rate in 2008) for the past three years, premiums for most people will increase by $3.50 in 2012. Beneficiaries who have higher incomes (a modified adjusted gross income of more than $85,000 for an individual or $170,000 for a couple) will pay more than $99.90 because they are required to pay an income-related surcharge.

While costs vary, the average premium for a Medicare Part D prescription drug plan in 2012 is estimated at around $30, approximately the same as in 2011. And Medicare Advantage premiums will be 4% lower, on average, in 2012 than in 2011, according to CMS.

Here are some other important Social Security figures for 2012:

• The maximum taxable earnings limit will be $110,100 ($106,800 in 2011).
• The retirement earnings test exempt amount for beneficiaries under full retirement age will be $14,640 per year ($14,160 in 2011).
• The retirement earnings test exempt amount for beneficiaries in the year full retirement age is reached will be $38,880 per year ($37,680 in 2011).

Here are some other important Medicare figures for 2012:

• The Medicare Part B deductible will be $140, down from $162 in 2011.
• The Medicare Part A deductible for inpatient hospitalization will be $1,156, up from $1,132 in 2011. Beneficiaries will pay an additional $289 per day for days 61 through 90, up from $283 in 2011, and $578 per day for stays beyond 90 days, up from $566 in 2011.
• Beneficiaries in skilled nursing facilities will pay a daily co-insurance amount of $144.50 for days 21 through 100 in a benefit period, up from $141.50 in 2011.

To view the Medicare fact sheet announcing 2012 figures, visit www.cms.gov.