By Joanne Bump
Social Security (SS) Is on the Ballot – The crisis of fully funding our SS checks has been talked about, and solutions have been proposed, but decisions have been put off for years. However, this election is different. The next senator will serve a six-year term from 2027 to 2033. Michigan’s Senator winning the upcoming mid-term election will be the one charged with fixing this SS shortfall. Without funding solutions, an estimated 24 percent cut to monthly SS benefits will go into effect by 2032. The estimated insolvency date was accelerated from early 2033 to late 2032 due to changes included in the One Big Beautiful Bill Act (OBBBA). According to the Committee for a Responsible Federal Budget (CRFB), SS funds will run out earlier due to changes to extend and expand the 2017 tax cuts, plus the senior deduction, and other OBBBA changes that reduced taxation of benefits, for an estimated $30 billion loss per year. Michigan’s average SS benefits are estimated to be cut by $523. See the “No State Spared: Estimating the Impact of a 24% Cut to Social Security” chart for the Michigan impact.
This isn’t a new issue, according to the City Pulse article (10-7-26). For the past 16 years, the cost of SS has been greater than the cash coming in, so the trust fund reserves were activated to pay the full benefits. According to Steven Haider, MSU economics professor, the leading cause for the SS insolvency was the change in worker to retiree ratio. In 1945, there were 42 workers per retiree. But 70 years later, the ratio has changed to less than three workers for one retiree. Retirees now live longer and birthrates are lower than when SS was enacted in 1935.
Michigan Adults Support SS Solutions for Solvency – An August 20, 2026, survey by “Voice of the People” (VOP), a nonpartisan organization advocating for democracy, reveals that Michigan has bipartisan majorities that agree on options that would significantly reduce the shortfall and extend full benefits for decades. Michigan’s surveys were fielded from May 27 – June 25, 2026, to 600 adults. The following solutions are favored by Michigan bipartisan majorities state-wide:
- Taxing wages over $400,000 with the payroll tax, which currently does not apply to income over $185,000.
- Gradually increasing the payroll tax from 6.2 percent to 6.5 percent.
- Reducing benefits for the top 20 percent of lifetime earners.
Official 2027 Social Security Cost of Living Adjustment (COLA) – The 2027 COLA will be announced on October 14, 2026, and included in your monthly benefits starting January 1, 2027. The Senior Citizen League (TSCL), a senior advocacy group, estimates a 3.5 percent increase. COLA is based on the average inflation for July, August, and September for the current year, compared to the average inflation of the same months last year. The average SS monthly benefit for August 2026 was slightly over $2,087, providing an average increase of about $73 a month.
While a 3.5 percent COLA may not seem like much, it will be slightly higher than the Medicare Trustees forecasted increase of 3.25 percent for Medicare Part B premiums. This doesn’t happen often. The final increase for the 2027 Medicare premiums is likely to be announced by early November. This SS COLA doesn’t include the increased cost of heating a home this winter that is expected to be 50 percent greater than it was in 2026, according to the National Energy Assistance Directors Association.
Where’s My $90 Check? – Around October 8, the federal administration announced that it will be sending out payments of $90 to over 20.8 million of those receiving traditional Medicare, or less than 1/3 of the 70.5 million total people receiving Medicare. However, groups not getting a check include those covered by private plans, like the Medicare Advantage plan for the State of Michigan defined benefit retirees, and higher income individuals, paying income adjusted premiums. Fox News says the check will be sent with a message that this is a Medicare Improvement Fund (MIF) payment of $90 to offset the October Medicare premium cost. According to Centers for Medicare and Medicaid Services (CMS), the standard monthly Part B premium increased to $202.90 in 2026, compared to $185 in 2025. The $90 check only pays for about 44 percent of the October standard monthly premium. The total cost of these checks is over $2 billion, nearly depleting the MIF fund.
Physicians Push Back Against Proposed 2027 Federal Cuts to Medicare Dermatology Coverage – Dr. Betsy Wernli, President of Forefront Dermatology, in East Lansing Michigan, organized a letter writing campaign to Congress opposing cuts recommended by CMS that would reduce or eliminate access to life-saving care for millions of older Americans. According to the sample letter, these cuts will delay cancer diagnoses, result in fewer doctors serving Medicare patients, result in longer wait times, and jeopardize high-quality dermatologic care. This will disproportionately harm older Americans and those in rural areas needing access to early skin cancer detection.
Michigan AG Nessel Sues Blue Cross Blue Shield (BCBS) of Michigan – Nessel sues BCBS in federal court, alleging an illegal health insurance monopoly, violating federal and state antitrust law, contributing to higher costs and negative health outcomes for Michigan residents. Nessel says BCBS controls 65 percent of the health insurance market and 79 percent of the Preferred Provider Organization (PPO) market in Michigan’s market due to illegal and anti-competitive agreements. She alleges BCBS abused its market dominance to push down rates paid to healthcare providers to the lowest in the nation, resulting in reduced services, closing facilities, and exiting Michigan altogether.
State of Michigan Investment Board (SMIB) – As reported by Gongwer (10-1-2026), Steve Watson replaces Reginald Sanders, as the representative for institutional investment or extensive financial experience for a term which expires on 11-26-2030.
Joanne Bump serves as feature columnist for “Retirement Matters.” Column content is time sensitive and is based on information as of 10/11/26. Sources are primarily from non-profit, and government policy research organizations. Joanne can be contacted by e-mail at joannebump@gmail.com.