Higher Medicare premiums will undermine social security's raise

Social Security reciepients are expected to get a 3.5 percent cost-of-living increase in January, but a boost in the cost of Medicare Part B premiums will likely offset some of the impact.  

The Associated Press/Los Angeles Times: Social Security To Hand Out First Raises Since '09
Social Security recipients will get a raise in January -; their first increase in benefits since 2009. It's expected to be about 3.5 percent. Some 55 million beneficiaries will find out for sure Wednesday when a government inflation measure that determines the annual cost-of-living adjustment is released. … Some of the increase in January will be lost to higher Medicare premiums, which are deducted from Social Security payments. Medicare Part B premiums for 2012 are expected to be announced next week, and the trustees who oversee the program are projecting an increase (10/18).

Market Watch: Social Security Benefits To Increase In 2012
Some 55 million Americans can expect their first increase in Social Security benefits in three years, though the possibility of higher Medicare premiums might eat up most of the extra income. The increase in benefits, which is likely to end up around 3.5%, will first show up in government checks sent out in January 2012 (Bartash, 10/18).