Johnson said increased income from COLA can impact Medicare costs down the road. “Those who receive low-income assistance for healthcare costs can be subject to trims in the amount of assistance they receive through Medicare Savings programs or Medicare Extra Help, or Medicaid,” she said. "Increased incomes due the COLA can make older and disabled beneficiaries ineligible for the level of benefits they currently receive when their income exceeds the limits."
Johnson noted that a recent survey by The Senior Citizens League said that 38% of survey participants who received low-income assistance in 2021 experienced reduced benefits in 2022 due to the 5.9% COLA received this year. Sixteen percent also indicated that they lost access to one or more low-income program altogether because their income was borderline, Johnson said.