- October 17, 2023
- Will Goodson
Social Security & Medicare Changes for 2024
The Social Security Administration recently announced that benefits for 2024 will increase by 3.2%. This is a noticeable change from the 8.7% increase seen in 2023. It marked one of the largest increases in nearly 40 years.
The adjustment for next year may appear small. However, it exceeds the 2.6% average over the last 20 years. Social Security uses the CPI-W Index to calculate the coming year’s benefit adjustment. This index tracks the average change in prices paid by urban wage earners and clerical workers for a basket of consumer goods and services.
The maximum earning amount subject to Social Security taxes will increase to $168,600 (from $160,200).
Additionally, the Centers for Medicare & Medicaid Services (CMS) announced 2024 premiums and deductible changes. Medicare Part B premiums will increase to $174.70 per month, from $164.90 in 2023. This represents a 6% increase from last year.
The annual Part B deductible will increase from $226 in 2023 to $240 for 2024 – a 6% increase.
You can read the full Social Security & Medicare press releases below:
https://www.ssa.gov/news/press/releases/2023/#10-2023-2
https://www.cms.gov/newsroom/fact-sheets/2024-medicare-parts-b-premiums-and-deductibles
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