The good: Annual Earnings Test limit is increasing faster than inflation. I'd rather they dump the damn thing entirely, but we take what we can get.
The bad: Medicare premiums grew faster than the COLA, meaning the first four months of 2024 are, again, going to be jammed with "hey I didn't get my raise" calls.
I don't think there's any big changes to the rules coming on Jan 1, like there was this year (the big Medicare enrollment period changes). Just numbers going up.
Medicare Premium went up $9.80 from base of $164.90 in 2023 to $174.70 in 2024. https://www.cms.gov/newsroom/fact-sheets/2024-medicare-parts-b-premiums-and-deductibles
2023 actually saw a decrease (very rare) from $170.10 in 2020. So, the increase from 2022 to 2024 ends up being $4.60,
So, Medicare increases are not based on COLA changes but on changes in Medical Costs. It seems that lower than expected costs in 2022 for certain drugs and other costs were the reason for the deduction. And, if the costs should rise, there is a hold harmless provision that says costs cannot exceed the COLA a person receives.
So, the average beneficiary will see an increase as will everyone with a benefit greater than $300.00 or so.
And yes, I am aware that for high income people the premium is more but any increase there is likely far less than the benefit increase as well.
3 comments:
The good: Annual Earnings Test limit is increasing faster than inflation. I'd rather they dump the damn thing entirely, but we take what we can get.
The bad: Medicare premiums grew faster than the COLA, meaning the first four months of 2024 are, again, going to be jammed with "hey I didn't get my raise" calls.
I don't think there's any big changes to the rules coming on Jan 1, like there was this year (the big Medicare enrollment period changes). Just numbers going up.
Medicare Premium went up $9.80 from base of $164.90 in 2023 to $174.70 in 2024. https://www.cms.gov/newsroom/fact-sheets/2024-medicare-parts-b-premiums-and-deductibles
2023 actually saw a decrease (very rare) from $170.10 in 2020. So, the increase from 2022 to 2024 ends up being $4.60,
So, Medicare increases are not based on COLA changes but on changes in Medical Costs. It seems that lower than expected costs in 2022 for certain drugs and other costs were the reason for the deduction. And, if the costs should rise, there is a hold harmless provision that says costs cannot exceed the COLA a person receives.
So, the average beneficiary will see an increase as will everyone with a benefit greater than $300.00 or so.
And yes, I am aware that for high income people the premium is more but any increase there is likely far less than the benefit increase as well.
My rent went up 9%
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