The Social Security Administration announced last month the cost of living adjustment for 2020. This adjustment is also applied to many of the government programs besides Social Security, that affect our clients’ lives. So here it is.
Following an increase last year of 2.8%, this year the increase is smaller, only 1.6%. In December, Social Security recipients will receive notices calculating their new monthly benefit amount with the increase. This includes people receiving traditional retirement Social Security, Social Security Disability and needs based Supplemental Security Income benefits. All are administered by the Social Security Administration.
The Medicaid income cap, which is tied to Social Security will rise by the same 1.6% to $2349 per month. This number is the limit on income per month needed to qualify for most Medicaid programs. For Medicaid recipients whose income exceeds this limit a Qualified Income Trust (commonly known as a Miller Trust) must be used to achieve and maintain eligibility.
Because the VA Aid and Attendance program adjustments is also tied to the same percentage increase, this means that those benefits will increase by the same 1.6%. The maximum benefit for a single veteran will increase to $1912. For a married veteran the maximum monthly benefit will rise to $2266 and for a widowed spouse of a veteran the new limit will be $1230.
Check back here in coming weeks as more numbers are released for 2020.