2024 Medicare Insights from Your Trusted Orlando, Florida Medicare Broker
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You may be wondering what surprises await us in 2024 regarding Medicare updates in Florida. Our Orlando Medicare broker team has conducted a thorough investigation, managing to obtain some vital information that will definitely shed light on the matter.
Sources say that for 2024, the Social Security Administration, or SSA for short, announced the following:
A number of 66 million Social Security and Supplemental Security Income or SSI recipients will definitely witness a cost-of-living adjustment (COLA).
42 years ago, the COLA was a whopping 11.2%.
A Detailed Breakdown: Unraveling the Cost of Medicare 2024
Over the last 10 years, the average COLA increase is 3.2% and that’s the exact increase for this year.
But let’s talk dollars. What does this mean? Well, the 2024 Social Security COLA indicates a $55 per month rise in benefits to the standard recipient.
Just like in past years, SSI beneficiaries will start getting their initial increase on December 29th, 2023.
Standard Social Security recipients will receive their first check in the month of January, 2024. Of course, the exact date depends on the date of birth of each person.
In December 2024, the Message Center of your “my Social Security account” will be where you will receive your personal Social Security COLA notice. But it can also arrive by regular mail.
Given the Consumer Price Index’s (CPI) projection of record-breaking inflation in 2024, this year’s increase is not entirely unexpected. Every year, the CPI, a measure of changes in consumer prices for a market basket of products, is used to determine the SS and SSI COLA.
According to recently released information from the Bureau of Labor Statistics (BLS), the Consumer Price Index for All Urban Consumers (CPI-U) increased by 0.4% on a seasonally adjusted basis in September. The September all-items index climbed to 8.2% year-over-year before adjustment.
Inflation’s Impact: Analyzing Your Medicare Information
The Social Security COLA increased again this year and inflation the prior year also saw a notable rise. This is due to the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers (CPI-W), another indicator of inflation, from which the Social Security COLA is generated and linked.
More specifically, the COLA and inflation rates for the next year are equal to the difference between the CPI-W for the third quarter of the previous year and the third quarter of the current year.
As an example, the COLA for beneficiaries of Social Security in 2024 is 3.2%, which is the difference between the CPI-W for the third quarter of 2022 and the third quarter of 2023.
Cost Analysis: Medicare Part B and Part A in 2024
In contrast to the previous year, the 2024 Medicare Part B rates would be somewhat lower, as revealed on September 27, 2023.
The average Part B beneficiary’s payment will be $174.70 in 2024, an increase of $9.80 from in 2023.
This is crucial because Social Security earnings are often used to pay Medicare premiums, which means that if those costs had increased, the COLA’s effects would have been lessened.
For Medicare Part A, hospital coverage, the majority of patients do not pay a premium, but they are still responsible for deductible and coinsurance fees. In 2024, the Part A deductible will increase by $32 to $1,632 from 2023.The Part A co-insurance has increased as well. The Part A daily coinsurance amounts will be $408 for days 61-90 hospitalization in a benefit period; $816 for lifetime reserve days; and $204 for days 21-100 of extended care services in a skilled nursing facility in a benefit period.
Additional Social Security Charges: What to Expect in 2024?
Social Security beneficiaries will experience the additional adjustments listed below starting in January 2024, in addition to the 3.2% benefit increase for 2024:
In 2024, we will see an increase to $168,600 from $160,200 to the maximum earnings subject to the Social Security tax. In 2024, we will see an increase to $170.10 a month from $164.90, leaving many beneficiaries with a few extra dollars in their monthly Social Security deposits. Working claimants who are under full retirement age will be able to earn a maximum of $22,320 before their benefits are reduced, up from $21,240 in 2023.
The maximum monthly Social Security payout for a worker reaching full retirement age in 2024 will rise to $3,822 from $3,627 in 2023. It’s $4,873 per month in 2024 if retiring at 70 and $2,710 if retiring at 62.
In 2024, the average Social Security payout will rise to $1,907 from $1,848.
When it comes to disabled workers, they will witness a rise from $1,364 each month to $1,483.
And finally, it will take up to $1,730 to earn one Social Security credit, an increase of $90 from $1,640 in 2023.
But it won’t be all about increases.
Remaining Constants: Your Florida Medicare Broker Explains
When it comes to the Social Security tax rates, they will not change for 2024. For employees, it will be set to 6.2%. For those self employed, expect Social Security and Medicare taxes to be 15.3%, unchanged from last year. Those individuals that earn over $200,000 or married couples that earn over $250,000 filing jointly, will still pay the same amount of an additional 1.45% in Medicare taxes.
Conclusion: Navigating Medicare Changes in Florida
The goal of the Social Security COLA was never to give beneficiaries a raise. Its sole intent was (and still is) to partially offset the rise in prices for goods and services from the prior year.
Of course, the system is not perfect by any means. Especially when it doesn’t take into account the rise of prices in the future or even the costs that are linked to different government programs, such as Medicare.
Millions of beneficiaries will enjoy a boost in monthly payouts. If there is no rise, inflation results in a wage reduction. The Medicare Part B premium reduction for this year is an additional benefit. This will help people on SS and SSI even more to maintain their quality of life when combined with the COLA.
Now let’s take a look at what we’ve learned regarding what’s going to change in the upcoming year.
Key Takeaways: Unpacking the 2024 Medicare Updates
In 2024, we will witness a decrease when it comes to Social Security COLA to 3.2%.
The normal recipient will see an increase of over $29 per month, giving an average SSI payment of $943 in 2024.
Because the sole intention of the SS and SSI COLA is to keep up with inflation, it is not a raise.
The value of the 2024 COLA might be further diminished by the rate of inflation in 2024.
In contrast to the moderate increase in Part A deductibles and coinsurance rates that was announced on September 27, 2023, Medicare Part B premiums have been reduced somewhat for 2024. The Centers for Medicare & Medicaid Services (CMS) has announced that the standard monthly Part B premium will be $174.70 in 2024, an increase of $9.80 from $164.90 in 2023.
Now, what do you think about the upcoming changes? Are you okay with them, or are they not what you would have expected them to be?
Of course, depending on your perspective, you can see them as good news or bad news. It can all be subjective.
We would love to hear your thoughts on the matter. If you have any questions regarding the Medicare 2024 changes, feel free to fill out the contact form below to get access to a free, no-obligation consultation with a licensed medicare insurance agent to get your questions answered today.
Dale would be happy to answer your questions and assist you in obtaining the best Medicare options for you and your family.
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