2023 Social Security COLA
Every year the relevant numbers for the government programs we work with change. It starts with the Social Security Administration, which announces its cost of living adjustment (COLA). Other government programs then adjust their numbers, sometimes using the same COLA as Social Security. For many years the adjustment has been small and there have been some years in which there has been no change.
Inflation, however, is now at heights we have not seen since the 1970’s and early 1980’s. That resulted in a 5.7% adjustment in 2022. In 2023 the COLA will be another big one, 8.7%. This means that Social Security recipients will receive the biggest jump in their monthly payment in years.
Medicare numbers will also change next year. The standard Medicare Part B premium that most people pay will actually decrease a bit from $170.10 to $164.90. Certain Medicare copays will increase next year. The Part A hospitalization deductible will increase to $1600 and the copay for days 61 through 90 will be $400 per day.
Medicare covers the cost of rehabilitation in a skilled nursing but there is a copay for that as well. The first 20 days are covered 100%. The next 80 days have a copay, which increases to $200 per day in 2023.
Other government programs adjust their numbers annually in lockstep with Social Security by the same cost of living adjustment. Check back here in coming weeks as we will look at those numbers as well.