What does the Hold Harmless Rule protect?

The Hold Harmless Rule is designed to protect Social Security beneficiaries from experiencing a decrease in their monthly benefit amount due to increases in Medicare Part B premiums. Essentially, this rule ensures that if there is an increase in Medicare premiums that exceeds the cost-of-living adjustment (COLA) in Social Security benefits, the amount of the benefit that individuals receive will not be reduced as a result of those premium increases.

This rule primarily applies to most beneficiaries of Social Security who do not have their premiums deducted from their Social Security check. In instances where the COLA does not increase or the amount of increase in Medicare premiums is higher than the increase in Social Security benefits, the Hold Harmless Rule prevents any reduction in the benefit payments, thereby safeguarding the financial well-being of those beneficiaries.

Other options relate to different facets of Social Security and Medicare, but they do not correctly represent the purpose of the Hold Harmless Rule. For example, while protecting benefits from inflation is important, that is not the specific function of the Hold Harmless Rule.