It's that time again in that as of the first of the year, your Social Security monthly income benefits payment will have a cost-of-living increase of 3.3 percent for an average increase of  $33 a month. The average Social Security payment in 2007 will be $1,044 per month.

Along with this increase will be a increases in the Medicare Part B premium. For most beneficiaries the premium in 2007 will be $93.50, an increase of $5 per month. 

However, 2007 also ushers in a significant change in Medicare, as premiums will begin to be calculated on the basis of a person or couple's income. For example, persons with annual income of  $80,001 to $100,000 ($160,000 to $200,000 per couple) the premium will rise to $105.80. For persons with annual income of more then $200,000 ($400,000 a couple) the premium will increase to $161.40 a month.

In addition, deductibles for Medicare Part A hospitalization will rise to $992 for your first day of hospitalization and Medical Services Medicare Part B annual deductible will increase to $131 in 2007. Information about all of these changes can be found in the 2007 edition of Health Care Choices for Minnesota Seniors, which is available free to all Senior Federation members.