Social Security COLA : Over 70 million Americans expect more Social Security funds next year. However, the increase won’t be as large as the 8.7% increase this year.
The Social Security COLA is expected to be around 3% in 2024. This is above the average of 2.6% over 20 years. When experts analyze the data, it’s clear how crucial COLA is for seniors and beneficiaries in handling inflation.
To calculate COLA, we add Q3 CPI for Urban Wage Earners and Clerical Workers to last year’s averages. This process calculates the change in numbers and determines next year’s COLA. Medicare Part B payments affects COLA amount. The fee coverage for non-overnight hospital stays affects earnings. Part B premiums are fluctuating, impacting COLA.
This year, there was a notable increase of 8.7%. It’s the largest gain in 40 years. Medicare Part B premiums rose due to pandemic expenses and debated costly medications. There’s a new Alzheimer’s drug called Leqembi. It’s getting more confusing. Despite limited usage, concerns exist about potential issues and costs. The medicine’s cost is currently unknown. The Inflation Reduction Act limits drug price hikes. This will happen from 2024 to 2025. This is good news for Medicare Part D users as it will reduce medication costs.
Medicare spending is shifting, with Part B getting a bigger share of funds. This is due to expensive medicines and increased healthcare outside hospitals. This may raise Part B spending and rates in the future.
If the Social Security COLA decreases in 2024, lower benefit recipients may face challenges. This is true if Part B payment increases significantly. In these cases, the gain may not be significant or could be offset by higher insurance costs.
The income and well-being disparities, especially for African Americans, require SSI benefit modifications. Advocates aim to enhance benefits and program accessibility.In Social Security and Medicare, people want fair benefits based on their finances and health.