The 2024 Social Security cost of living adjustment (COLA) will increase benefits by 3.2% starting with the check to be received in January. That will raise an average monthly retiree benefit of $1,848 by $59 but, watch your mail in early December for the letter from the Social Security Administration that explains exactly what you will receive.
The letter is headed: “Your New Benefit Amount,” and it shows your new monthly benefit amount as well as details about the deduction for Medicare Part B and other deductions that you may have requested, such as the premiums for Medicare Advantage or a Part D drug plan (if any) and federal tax withholding.
The bottom line for retired and disabled Social Security recipients and whether the COLA will make much of a difference to Social Security benefits has a lot to do with the amount of the Medicare Part B premium, and how much it, and other Medicare premiums increase from year to year. The Social Security Administration automatically deducts the Medicare Part B premium from Social Security benefits, which often consumes most, if not all, of the COLA.
For most Medicare beneficiaries, the standard monthly Medicare Part B premium in 2024 will be $174.70 — an increase of $9.80 from $164.90 in 2023. The annual deductible will be $240.
Beneficiaries with incomes higher than $103,000 (individuals)/$206,000 (couples) will pay higher premiums. More details about income related monthly premium amounts can be found online at: https://www.cms.gov/newsroom/fact-sheets/2024-medicare-parts-b-premiums-and-deductibles.
Sources: Social Security Administration fact sheet, October 12, 2023.
Centers For Medicaid and Medicaid Services, Premiums and Deductibles 2024, October 13, 2023.