Chipping away at the COLA increase

For the first time in two years, Social Security recipients are getting a raise. The average Social Security check will increase by about $40 a month next year because of a cost-of-living adjustment, known to beneficiaries as COLA.

Most won't see all the money. The standard premium for Medicare Part B recipients will be $99.90 a month next year. For most recipients, whose premiums have been "frozen" for two years, that's a $3.50-a-month increase. Those who first signed up for Part B this year will actually see their premiums decrease by $15.50 a month.

Because there has been no COLA increase for the past two years, by law, Medicare Part B premiums could not rise for most Social Security beneficiaries. So while Social Security recipients will get their first increase in two years, it also will mark the first time in two years that most Medicare Part B recipients will have to pay a higher premium.