Regardless of which State in the United States you live in, the COLA will increase your Social Security benefit for the next year. This will take effect as of January 2023. The COLA increase will be as high as 8.7%, so seniors with a benefit will be able to get a nice increase in their monthly check. This makes the Social Security Administration bigger, but it is not the only thing that will bring benefits to retirees. Especially if we are talking about retirees over 65, since they are the ones who are eligible to use Medicare.
The combination of the COLA increase with a new Medicare downgrade will make it possible for Social Security users to get a nice money savings. Medicare Part B has a premium section. This section is a payment and is deducted directly from Social Security benefits unless the retiree cancels it. And here comes the most important issue, and that is that we will see a discount on this Medicare Part B, which is in addition to the 2023 COLA. So, between this combination of factors we will find ourselves with an extra amount of money per month.
For one thing, benefits will increase by 8.7% starting in January 2023. Not only that, but Supplemental Security Income payments will also see an increase. To this we must add that Medicare Part B will see a decrease in its monthly payment. In this regard, people who have the premium part of Medicare Part b will start paying $164.90 instead of the $170.10 they have been paying this year 2022. That may not sound like a lot of savings, but in the long run and adding to the COLA it is a big deal.
Who can receive this increase in savings with Social Security and Medicare?
To receive this increase in Medicare savings and the Social Security COLA, you do not have to go through any kind of process. You do have to meet a number of requirements:
- You must have an accepted Social Security benefit. The COLA will be applied automatically starting with the first check in 2023.
- Be 65 years of age. Before this age, it is impossible to start using Medicare, so it is essential to be this age.
- Pay for the premium part of Medicare Part B. This is the part where we will get the discount. If we do not have it active, the discount will be impossible.
If you meet these three requirements you will see a small savings starting next year 2023. Any additions to the Social Security Administration checks are welcome by retirees.