2024 Social Security Cost of Living Adjustment
When we get to the end of the year, it’s time to look ahead to what numbers may change in 2024 for the government programs from which our clients receive benefits. 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. In the last 2 years because of the highest inflation rates that we have seen in 40 years, the adjustments were large at 5.7% for 2022 and 8.7% for 2023.
Inflation, has steadily declined, however, so the COLA for 2024 is a more modest 3.2%. This means that Social Security recipients will receive an increase in their monthly payment of 3.2%.
Medicare numbers will also change next year. The standard Medicare Part B premium that most people pay will increase by 6% to $174.70. This follows last year when the premium actually decreased from $170.10 to $164.90. Certain Medicare deductibles and copays will increase next year. The Part A hospitalization deductible will increase by $32 to $1632 and the copay for days 61 through 90 will increase from $400 to $408 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 from $200 per day in 2023 to $208 per day in 2024. 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.