Social Security Benefits and Medicare Premiums Both Up For 2024
As the 2023 calendar year comes to an end the Social Security Administration and the Center for Medicare and Medicaid Services have both issued their figures for the new 2024 year. It would probably come as no surprise that both Social Security benefits and Medicare Part B Premiums and Deductibles are trending upward. The impact for the individual taxpayer and benefit recipient can of course vary from person to person. Here are some generalizations.
- Social Security – What to Expect. So, an increase in Social Security payments is good news to recipients. Last year in 2023, Social Security recipients received the greatest increase in their monthly checks in decades. It will increase again in 2024 but not by as much. “What Will Your 2024 Social Security Benefits Look Like?” Elder Law Answers, www.elderlawanswers. The increase was estimated at nearly 9 percent then. For 2024, while the payouts will rise again, because the Cost of Living Adjustment (COLA) is lower than the prior year, the average increase in monthly checks over 2023 is reported to be about 3.2 percent. It may be worth noting that this increase comes on top of the increase from the prior year and so on. Delaying Social Security benefits until a later age does itself increase the ultimate benefits received by a beneficiary also. For those who are so inclined and healthy and not in need of receiving benefits now this means that delaying receipt of Social Security benefits to age 70, for instance, can pay off for those likely to experience a long lifetime. If you are already receiving Social Security then you have received or will receive shortly a communication from the Social Security Administration indicating your new monthly payment amount. If you do not want to wait, however, you can check the My Social Security online portal at https://www.ssa.gov/myaccount/. You need to register first. The portal allows you to perform other tasks as well including your Social Security listing of record earnings by year and ability to review to see if their information is correct. Note that Social Security does not only apply to retirees. Disabled persons on Social Security Disability and persons who receive Supplemental Security Income are also affected.
- Medicare Part B Premiums and Deductibles are also going up in 2024. As we work our way out of the COVID nightmare some benefits received during that time are not necessarily going to be available into the future. One result was that, in 2023 seniors saw a reduction in Part B standard monthly premiums and annual deductibles also went down. www.elderlawanswers.com “Medicare Part B Premiums, Deductibles Going Back Up in 2024” This directional movement has changed and Medicare Part B enrollees who pay the standard monthly premium of $164.99 will see a small increase to $174.70. Higher income enrollees who, because of income pay at a higher rate will have an adjusted higher rate. See https://www.cms.gov/newsroom/fact-sheets/2024-medicare-parts-b-premiums-and-deductibles. Medicare Part A deductibles, the type of Medicare that covers hospitalization and stays at skilled nursing facilities, will have a slight increase from $1,600 in 2023 to $1,632 in 2024. Note that if you have a Medicare Supplement plan these expenses are generally taken care of in the plan. Medicare Part A premiums would also rise but most people will not be affected by this since they or their spouse paid into the system while working. (Remember FICA). Co-payments for hospital stays and for skilled nursing rehabilitation following hospital stays have increased slightly. Note that Medicare Supplement plans that you purchase privately cover the co-payments and this is one reason for having a Medicare Supplement in addition to basic Medicare. Medicare Advantage plans work differently.
- Some General Observations. The changes noted above reported by the Social Security Administration and the Center for Medicare and Medicaid Services (CMS) are not likely to result in drastic change. The increase in Social Security is more likely to impact recipients positively and the increases in co-pays and deductibles for the Medicare program are minimal. There are greater differences for Medicare recipients depending on whether they choose a Medicare Supplement or a Medicare Advantage plan since, generally speaking, Medicare Supplements are somewhat more expensive but work better in handling serious illness coverage. Medicare Advantage plans generally cost less up front (or $0 premium) but are not as good for covering serious care.
About the Author Janet Colliton
Esquire, Colliton Law Associates, P.C. Janet Colliton has practiced law for over 38 years, 37 of them in Chester County, Pennsylvania, a suburb of Philadelphia. Her practice, Colliton Law Associates, PC, is limited to elder law, Medicaid, including advice, applications and appeals, and other benefits planning including Veterans benefits, life care and special needs planning, guardianships, retirement, and estate planning and administration.