Medicare Premiums Are Increasing in 2024
Medicare Premiums are increasing by 5.9% in 2024.
Your Social Security benefit, because of the COLA, is only increasing by 3.2% in 2024. Because monthly Medicare premiums are withdrawn from Social Security Benefits, you may think the Medicare increase will wipe out Social Security benefits. But that is not the case.
Medicare increase applies to a much smaller number than your Social Security benefit.
In 2023, most people on Medicare paid a monthly premium of $164.90. This monthly premium could be higher if your income exceeds certain levels. For this example, we'll use $164.90.
You would then apply the 5.9% increase to the amount of $164.90. The amount of the Medicare premium you will then pay in 2024 is increased to $174.70. That is only an increase of $9.80 per month.
On the other hand, the average monthly Social Security benefit that people receive is $1,848.
Apply the COLA increase of 3.2% to the average benefit amount of $1,848. That will increase the monthly benefit to $1,907. That is an increase of $59.00.
Subtracting the monthly Medicare premium increase of $9.80 from the average Social Security monthly benefit increase of $59.00 and the result is $49.20.
Even after subtracting the Medicare monthly premium increase of 5.9% from the average Social Security monthly benefit increase of only 3.2%, the average Social Security monthly benefit amount will experience a net increase of $49.20 or an increase of $590.20 ($49.20 x 12) for the year.
I am sure you were hoping for a much bigger Social Security COLA increase than 3.2% in 2024, but even with that smaller increase, you still come out ahead.
