856.235.8501

2024 COLA INCREASES FOR MEDICAID, SOCIAL SECURITY, MEDICARE, TAX AND VETERANS BENEFITS

by: Begley Law Group

by Thomas D. Begley, Jr., Esquire, CELA

            Many public benefits and tax numbers are indexed to inflation.  Different agencies use different inflation factors, but Social Security used 3.2 for increasing the numbers for 2024.  Below is a chart that states numbers for the following: Medicaid, Social Security, Medicare, Tax, Veterans Aid and Attendance and Veterans Housebound Benefits.

Medicaid

For 2024 there will be a 3.7% COLA increase for Medicaid standards.[1]

  • Income Cap[2] $2,829
  • Maximum Community Spouse Resource Allowance (CSRA)[3] $154,140
  • Minimum CSRA[4] $30,828
  • Maximum Minimum Monthly Maintenance Needs Allowance (MMMNA)[5] $3,853.50
  • MMMNA (July 1, 2023 until June 30, 2024)[6] $2,465
  • Excess Shelter Allowance (July 1, 2023 until June 30, 2024)[7] $739.50
  • Maximum Resource Limit (Individual)[8] $2,000
  • Minimum and Maximum Cap on Equity in the Home[9] $713,000 – $1,071,000

Social Security

For 2024, there will be a 3.2% COLA increase for Social Security benefits.[10]

  • Maximum Social Security benefit for a single individual retiring at full retirement age[11]                                                                                                                             $3,822
  • Supplemental Security Income (SSI) – Single[12]                $943
  • Supplemental Security Income (SSI) – Couple[13]            $1,451
  • Supplemental Security Income (SSI) – Essential Person[14]      $472
  • Maximum Annual SSI benefit – Single[15] $11,316
  • Maximum Annual SSI benefit – Couple[16] $16,980
  • Substantial Gainful Activity (SGA) – Disabled[17] $1,550
  • SGA – Blind[18]            $2,590
  • Tax Rate Employer and Employee calculated separately[19]

     (includes OASDI and Medicare) Add an additional .09% for individuals earning more than $200,000 or married couples earning more than $250,000      7.65%

  • Tax Rate Self Employed[20]       30%
  • Trial Work Period[21]        $1,110
  • Maximum Social Security Contribution and Benefit Base[22]    $168,600
  • Quarter of Coverage[23]            $1,730

Medicare

Part A

  • Medicare Co-Payment – Skilled Nursing Facility (SNF)[24] $204
  • Hospital Deductible[25] $1,632
  • Per day Co-Insurance – Day 61 -90[26] $408
  • Per day Co-Insurance – Day 91-150[27] $816

Part A Premium

  • With 30-39 quarters of Social Security coverage[28] $278
  • With 29 or fewer quarters of Social Security coverage[29] $505

Part B

  • Medicare Part B Deductible[30]       $240
  • Standard Part B Premium[31]         $174.70

Medicare Part B – Single or Married and Filing Joint Return

Part B Income-Related Premium[32]

Beneficiaries who file an individual

tax return with income:

 

Beneficiaries who file a joint tax return with

income:

Income-related monthly adjustment amount Total monthly premium amount

 

Less than or equal to $103,000

 

Less than or equal

to $206,000

$0.00 $174.70
Greater than

$103,000 and less

than or equal to $129,000

 

Greater than $206,000 and less than or equal to $258,000 $69.90 $244.60
Greater than $129,000 and less than or equal to $161,000

 

Greater than $258,000 and less than or equal to $322,000 $174.70 $349.40
Greater than $161,000 and less than or equal to $193,000

 

Greater than $322,000 and less than or equal to $386,000 $279.50 $454.20
Greater than $193,000 and less than or equal to $500,000

 

Greater than $386,000 and less than or equal to $750,000 $384.30 $559.00
Greater than or equal to $500,000 Greater than or equal to $750,000 $419.30 $594.00

In addition, the monthly premium rates to be paid by beneficiaries who are married, but file a separate return from their spouse and lived with their spouse at some time during the taxable year are:

Beneficiaries who are married and lived with their spouses at any time during the calendar year, but who file separate tax returns from their spouses:

 

Income-related monthly adjustment amount Total monthly premium amount
Less than or equal to

$103,000

 

$0.00 $174.70
Greater than $103,000 and less than $397,000

 

$384.30 $559.00
Greater than or equal to $397,000 $419.30 $594.00

Standard Part D Cost-Sharing for 2024[33]

  • Annual Deductible Maximum$545

(After the Deductible is met, Beneficiary pays 25% of Covered costs up to total prescription costs meeting the initial Coverage Limit)

  • Initial Coverage Limit            $ 5,030
  • Out-of-Pocket Threshold       $8,000

 (Brand name drugs:  70% Discount + 5% plan “subsidy,”

Generic drugs:  Plan pays 75%)

  • Total Covered Part D Drug Out-of-Pocket$11,477.39

Spending including Coverage Gap

(Catastrophic Coverage starts after this point.)

Catastrophic cost-sharing:  Eliminated in 2024.

Tax

  • Annual Gift Tax Exclusion[34]      $18,000
  • Gifts to Non-Citizen Spouse[35] $185,000
  • Income Level/Maximum Tax Estates and Trust[36]           $15,200
  • Income Level/Maximum Single Individual Income Tax[37]         $609,350
  • Federal Estate and Gift Tax Exemption[38]         $13,610,000
  • FICA Wage Threshold[39] Domestic Workers        $2,700
  • FUTA Wage Base[40]         $7,000
  • Maximum IRA Contribution[41] $7,000
  • “Catchup” IRA Contribution[42] $1,000
  • Applicable Allowable AGI Limit Roth IRA Single Taxpayer[43] $146,000 – $161,000
  • Applicable Allowable AGI Limit Roth IRA Married Taxpayer Filing Jointly[44]                                                                                                   $230,000 – $240,000
  • Medicare Tax on Earned Incomes over $200,000 – Single, over $250,000 – Married[45]                                                                                0.9%
  • Medicare Tax on Unearned Incomes over $200,000 – Single, over $250,000 – Married[46]                                                                                3.8%
  • Maximum Earned Income Contribution to ABLE Account by Disabled Beneficiary[47] (compensation up to the federal poverty level (FPL) for a one-person household, as defined the previous calendar year, or up to the amount of their earned income, whichever is less)      $14,580

Veterans Aid & Attendance and Household Benefits[48]

Aid and Attendance

  • Veteran with no dependents   $27,609 annually
  • Veteran with one dependent   $32,729 annually
  • Spouse of deceased Veteran with no dependent   $17,743 annually

Housebound Benefits

  • Housebound Veteran, no dependents   $20,226 annually
  • Housebound Veteran, one dependent   $25,348 annually

Net Worth

The net worth limit for a Veteran seeking Aid and Attendance is $155,356 for 2024.

[1] DMCS Information Bulletin, 2024 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 14, 2023.

[2] 42 U.S.C. §1396a(a)(10)(A)(v); DMCS Information Bulletin, 2024 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 14, 2023.

[3] DMCS Information Bulletin, 2024 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 14, 2023.

[4] DMCS Information Bulletin, 2024 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 14, 2023.

[5] DMCS Information Bulletin, 2024 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 14, 2023.

[6] DMCS Information Bulletin, 2024 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 14, 2023.

[7] DMCS Information Bulletin, 2024 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 14, 2023.

[8] 20 CFR § 416.1205(c).

[9] 42 U.S.C. §1396p(f); DMCS Information Bulletin, 2024 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 14, 2023.

[10] 88 F.R. 72803 (October 23, 2023).

[11] Fact Sheet, Social Security, 2024 Social Security Changes, ssa.gov.

[12] 88 F.R. 72803 (October 23, 2023).

[13] 88 F.R. 72803 (October 23, 2023).

[14] 88 F.R. 72803 (October 23, 2023).

[15] 88 F.R. 72803 (October 23, 2023).

[16] 88 F.R. 72803 (October 23, 2023).

[17] 88 F.R. 72803 (October 23, 2023).

[18] 88 F.R. 72803 (October 23, 2023).

[19] Fact Sheet, Social Security, 2024 Social Security Changes, ssa.gov.

[20] Fact Sheet, Social Security, 2024 Social Security Changes, ssa.gov.

[21] 88 F.R. 72803 (October 23, 2023).

[22] 88 F.R. 72803 (October 23, 2023).

[23] 88 F.R. 72803 (October 23, 2023).

[24] 88 F.R. 71551 (October 17, 2023).

[25] 88 F.R. 71551 (October 17, 2023).

[26] 88 F.R. 71551 (October 17, 2023).

[27] 88 F.R. 71551 (October 17, 2023).

[28] 88 F.R. 71555 (October 17, 2023).

[29] 88 F.R. 71555 (October 17, 2023).

[30] 88 F.R. 71555 (October 17, 2023).

[31] 88 F.R. 71555 (October 17, 2023).

[32] 88 F.R. 71555 (October 17, 2023).

[33] 2024 Medicare Part D. Outlook, https://q1medicare.com/PartD-The-2024-Medicare-Part-D-Outlook.php

[34] I.R.C. §2503; Rev. Proc. 2023-34(3)(.43)(1).

[35] I.R.C. §2523; Rev. Proc. 2023-34(3)(.43)(2).

[36] I.R.C. §1(e); Rev. Proc. 2023-34(3)(.01) Table 5.

[37] I.R.C. §1(c); Rev. Proc. 2023-34(3)(.01) Table 3.

[38] I.R.C. §2010; Rev. Proc.  2023-34(3)(.41).

[39] 88 F.R. 72803 (October 23, 2023).

[40] Topic 759 Form 940 IRS.

[41] IR Notice 2023-75.

[42] IR Notice 2023-75.

[43] IR Notice 2023-75.

[44] IR Notice 2023-75.

[45] IRC § 3101(b).

[46] IRC § 1411.

[47] 26 USC §529A; HHS Poverty Guidelines (https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines).

[48] http://va.gov/pension/veterans-pension-rates/