2025 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 2.5% for increasing the numbers for 2025. 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 2025 there will be a 2.5% COLA increase for Medicaid standards.[1]
- Income Cap[2] $2,901
- Maximum Community Spouse Resource Allowance (CSRA)[3] $157,920
- Minimum CSRA[4] $31,584
- Maximum Minimum Monthly Maintenance Needs Allowance (MMMNA)[5] $3,948
- MMMNA (July 1, 2024 until June 30, 2025)[6] $2,555
- Excess Shelter Allowance (July 1, 2024 until June 30, 2025)[7] $766.50
- Maximum Resource Limit (Individual)[8] $2,000
- Minimum and Maximum Cap on Equity in the Home[9] $730,000 – $1,097,000
Social Security
For 2025, there will be a 2.5% COLA increase for Social Security benefits.[10]
- Maximum Social Security benefit for a single individual retiring at full retirement age[11] $4,018
- Supplemental Security Income (SSI) – Single[12] $967
- Supplemental Security Income (SSI) – Couple[13] $1,450
- Supplemental Security Income (SSI) – Essential Person[14] $484
- Maximum Annual SSI benefit – Single[15] $11,600
- Maximum Annual SSI benefit – Couple[16] $17,400
- Substantial Gainful Activity (SGA) – Disabled[17] $1,620
- SGA – Blind[18] $2,700
- 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] $1,160
- Maximum Social Security Contribution and Benefit Base[22] $176,100 00
- Quarter of Coverage[23] $1,810
Medicare
Part A
- Medicare Co-Payment – Skilled Nursing Facility (SNF)[24] $209.50
- Hospital Deductible[25] $1,676
- Per day Co-Insurance – Day 61 -90[26] $419
- Per day Co-Insurance – Day 91-150[27] $838
Part A Premium
- With 30-39 quarters of Social Security coverage[28] $285
- With 29 or fewer quarters of Social Security coverage[29] $518
Part B
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 $106,000
|
Less than or equal
to $212,000 |
$0.00 | $185.00 |
| Greater than
$106,000 and less than or equal to $133,000
|
Greater than $212,000 and less than or equal to $266,000 | $74.00 | $259.00 |
| Greater than $133,000 and less than or equal to $167,000
|
Greater than $266,000 and less than or equal to $334,000 | $185.00 | $370.00 |
| Greater than $167,000 and less than or equal to $200,000
|
Greater than $334,000 and less than or equal to $400,000 | $295.00 | $480.90 |
| Greater than $200,000 and less than or equal to $500,000
|
Greater than $400,000 and less than or equal to $750,000 | $406.90 | $591.90 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $443.90 | $628.90 |
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
$106,000
|
$0.00 | $185.00 |
| Greater than $106,000 and less than $394,000
|
$406.90 | $591.90 |
| Greater than or equal to $394,000 | $443.90 | $628.90 |
Standard Part D Cost-Sharing for 2025[33]
- Annual Deductible Maximum$590
(After the Deductible is met, Beneficiary pays 25% of Covered costs up to total prescription costs of $2,000)
Tax
- Annual Gift Tax Exclusion[34] $19,000
- Gifts to Non-Citizen Spouse[35] $190,000
- Income Level/Maximum Tax Estates and Trust[36] $15,650
- Income Level/Maximum Single Individual Income Tax[37] $626,350
- Federal Estate and Gift Tax Exemption[38] $13,990,000
- FICA Wage Threshold[39] Domestic Workers $2,800
- 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] $150,000 – $165,000
- Applicable Allowable AGI Limit Roth IRA Married Taxpayer Filing Jointly[44] $236,000 – $246,000
- 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) $15,060
Veterans Aid & Attendance and Household Benefits[48]
Aid and Attendance
- Veteran with no dependents$28,300 annually
- Veteran with one dependent$33,548 annually
- Spouse of deceased Veteran with no dependent$18,187 annually
Housebound Benefits
- Housebound Veteran, no dependents$20,732 annually
- Housebound Veteran, one dependent$25,982 annually
Net Worth
The net worth limit for a Veteran seeking Aid and Attendance is $169,240 for 2025.
[1] CMCS Information Bulletin, 2025 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 15, 2024.
[2] 42 U.S.C. §1396a(a)(10)(A)(v); CMCS Information Bulletin, 2025 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 15, 2024.
[3] CMCS Information Bulletin, 2025 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 15, 2024.
[4] CMCS Information Bulletin, 2025 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 15, 2024.
[5] CMCS Information Bulletin, 2025 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 15, 2024.
[6] CMCS Information Bulletin, 2025 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 15, 2024.
[7] CMCS Information Bulletin, 2025 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 15, 2024.
[8] 20 CFR § 416.1205(c).
[9] 42 U.S.C. §1396p(f); CMCS Information Bulletin, 2025 SSI and Spousal Impoverishment and Medicaid Savings Programs Resource Standards, November 15, 2024.
[10] Fact Sheet, Social Security, 2025 Social Security Changes, ssa.gov.
[11] Fact Sheet, Social Security, 2025 Social Security Changes, ssa.gov.
[12] Fact Sheet, Social Security, 2025 Social Security Changes, ssa.gov.
[13] Fact Sheet, Social Security, 2025 Social Security Changes, ssa.gov.
[14] SSI Federal Payment Amounts for 2025.
[15] SSI Federal Payment Amounts for 2025.
[16] SSI Federal Payment Amounts for 2025.
[17] Fact Sheet, Social Security, 2025 Social Security Changes, ssa.gov.
[18] Fact Sheet, Social Security, 2025 Social Security Changes, ssa.gov.
[19] Fact Sheet, Social Security, 2025 Social Security Changes, ssa.gov.
[20] Fact Sheet, Social Security, 2025 Social Security Changes, ssa.gov.
[21] Fact Sheet, Social Security, 2025 Social Security Changes, ssa.gov.
[22] Fact Sheet, Social Security, 2025 Social Security Changes, ssa.gov.
[23] Fact Sheet, Social Security, 2025 Social Security Changes, ssa.gov.
[24] 2025 Medicare Part A & B Premiums & Deductibles/CMS.
[25] 2025 Medicare Part A & B Premiums & Deductibles/CMS.
[26] 2025 Medicare Part A & B Premiums & Deductibles/CMS.
[27] 2025 Medicare Part A & B Premiums & Deductibles/CMS.
[28] 2025 Medicare Part A & B Premiums & Deductibles/CMS.
[29] 2025 Medicare Part A & B Premiums & Deductibles/CMS.
[30] 2025 Medicare Part A & B Premiums & Deductibles/CMS.
[31] 2025 Medicare Part A & B Premiums & Deductibles/CMS.
[32] 2025 Medicare Part A & B Premiums & Deductibles/CMS.
[33] 2025 Medicare Part A & B Premiums & Deductibles/CMS.
[34] I.R.C. §2503; Rev. Proc. 2024-40(2)(.43)(1).
[35] I.R.C. §2523; Rev. Proc. 2024-40(2) (.43)(2).
[36] I.R.C. §1(e); Rev. Proc. 2024-40(2) (.01) Table 5.
[37] I.R.C. §1(c); Rev. Proc. 2024-40(2) (.01) Table 3.
[38] I.R.C. §2010; Rev. Proc. 2024-40(2) (.41).
[39] Social Security Employment Coverage Thresholds, ssa.gov/oact/cola/covthresh.
[40] Topic 759 Form 940 IRS, Publication 15A.
[41] IR Notice 2024-285, November 1, 2024.
[42] IR Notice 2024-285, November 1, 2024.
[43] IR Notice 2024-285, November 1, 2024.
[44] IR Notice 2024-285, November 1, 2024.
[45] IRC § 3101(b).
[46] IRC § 1411.
[47] 26 USC §529A.
[48] http://va.gov/pension/veterans-pension-rates/