The release of the Cost-of-Living Adjustment (COLA), which has a considerable impact on Social Security claimants’ financial well-being, is anxiously anticipated every year.
While the 2024 COLA is anticipated to be revealed soon, the crucial question of whether Medicare premiums will rise in 2024 remains large.
A record 8.7% raise was given to beneficiaries this year, but the estimated COLA for 2024 would be 3.2%, which will be significantly less than that. Based on consumer price statistics showing a 3.7% increase in overall inflation from the prior year, this adjustment has been made.
A 3.2% COLA is still better than the average for the previous 20 years, but it might not be enough to allay the financial worries of seniors who must pay high prices for housing, healthcare, and basic groceries.
A 3.2% COLA would result in an increase of $57.30 for the typical retiree getting a $1,790 monthly payout.
Although this additional income is appreciated, the difficulties brought on by rising living expenses might not be resolved.
Will Medicare Premiums Rise in 2024?
Retirement-related expenses, such as Medicare Part B premiums, are anticipated to rise in 2024. Between the middle of October and the start of November is when the official announcement is anticipated to occur.
According to the Medicare Trustees, the cost would increase from $164.90 in 2023 to $174.80 in 2024. However, significant new costs that might appear over the year are not taken into consideration in this assessment.
The addition of Alzheimer’s therapy to Medicare coverage could result in an increase in premiums for Medicare in 2024. Leqembi, a novel Alzheimer’s medication, is anticipated to be among the most expensive therapies reimbursed by Medicare Part B.
Leqembi and associated services are anticipated to increase Part B rates by an additional $5 per month, bringing the total to $179.80 per month.
Beneficiaries Must Understand How the COLA Rise Affects Their Medicare Premiums
Due to the automatic deduction of Medicare Part B premiums from Social Security benefits, the amount of the COLA directly affects the net income that seniors receive.
Retirement benefits may stagnate for several years as a result of a significant increase in Part B payments, pushing seniors to spend down their savings or take on debt.
Social Security claimants prepare themselves for anticipated adjustments to their monthly benefits as the 2024 COLA announcement nears.
A 3.2% COLA is anticipated, but it’s unclear how it would affect Medicare premiums because of things like the addition of new medicines.
To make wise financial decisions in the coming year, retirees must stay current on these trends.