Preparing for the Social Security Cost-of-Living changes in 2024
Every year the Social Security Administration (SSA) makes a determination about how much they should raise Social Security and Supplemental Security Income (SSI) benefits. This Cost-of-Living Adjustment (COLA) is made to ensure that the purchasing power of these benefits is not eroded by inflation, which has been particularly high in recent years.
So what changes to your public benefits can you expect in 2024?
According to the SSA, more than 71 million Americans will be able to take advantage of this year’s COLA increase of 3.2%. In this post, we’ll walk through what you need to know.
KEY PAYMENT ADJUSTMENTS
Several adjustments will go into effect as a result of the COLA increase; here are some specific numbers that may be relevant.
- New Federal SSI payment standard is $943/month for an individual and $1,415/month for a couple.
- New Social Security Disability Insurance (SSDI) thresholds: $1,550/month (non-blind), $2,590/month (blind), and $1,110/month (Trial Work Period).
- Estimated average monthly Social Security retirement payment for individuals is $1,907 per month.
- Annual gift exclusion limit for 2024 is $18,000 and the same limit applies to annual ABLE Account contributions.
For more details about the 2024 COLA changes, refer to the official fact sheet from the Social Security Administration.
MEDICAID ADJUSTMENT
In regards to Medicaid, the Spousal Impoverishment Figures will see their own changes for this new year:
- The new minimum Community Spouse Resource Allowance (CSRA) is $30,828 and the maximum is $154,140.
- The minimum monthly maintenance needs allowance is $2,465 ($3,080 for Alaska and $2,835 for Hawaii).
- The maximum monthly maintenance needs allowance is $3,853.50.
MEDICARE ADJUSTMENTS
Medicare premiums will also see a slight increase in 2024 from the 2023 rates.
- Part B premium: $174.70 (from $164.90)
- Part B deductible: $240 (from $226)
- Part A deductible: $1,632 (from $1,600)
- Co-payment for hospital stay days 61-90: $408 (from $400/day)
- Co-payment for hospital stay days 91 and beyond: $816/day (from $800)
- Skilled nursing facility co-payment days 21-100: $204/day (from $200)
Note that these numbers are for low-income beneficiaries; you can find more details about Medicare changes on the Centers for Medicare & Medicaid Services website.
