When the Social Security Administration (SSA) announced the 3.2% Cost-of-Living Adjustment (COLA) for 2024, many SSDI recipients, applicants, and caregivers felt a mix of relief and uncertainty. This adjustment, though smaller than last year’s, aims to help millions keep up with inflation, especially as costs for essentials like food and healthcare continue to rise. But what does this mean for you—whether you’re applying for SSDI, already receiving benefits, or struggling with healthcare costs? And how will changes to Medicare premiums impact your budget?
What is COLA?
In simple terms, COLA is an annual adjustment to Social Security benefits based on inflation, as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This ensures that as the cost of living rises, so do your benefits, helping you maintain purchasing power over time.
In this blog, we’ll explore how the 2024 COLA adjustment and Medicare premium changes impact different groups, from those considering SSDI to those currently receiving both SSDI and Medicare.
How the 2024 COLA Adjustment Will Affect You
1. For Those Considering Applying for SSDI
If you’re planning to apply for SSDI, now is an important time. With the 3.2% COLA adjustment, you’ll be stepping into a system that acknowledges inflation’s impact on disabled individuals. Future benefits will rise over time to keep pace with living costs.
Applying for SSDI can feel overwhelming, but the Disability Digest is here to guide you. Our team specializes in helping people navigate the application process, ensuring your case has the strongest possible foundation. Don’t wait to secure your financial future—take the first step today.
2. For Those Already Approved for SSDI
If you’ve already been approved for SSDI, the 3.2% COLA adjustment offers some relief in 2024. You can expect your monthly payment to increase slightly, with the average SSDI benefit rising from approximately $1,489 to $1,537. Though it’s a modest increase, every extra dollar counts when managing medical expenses, groceries, and other essential bills.
However, it’s not just your SSDI benefits that will change. Medicare premiums have also been updated for 2024, and you’ll need to factor those into your budget. The standard monthly premium for Medicare Part B—which covers doctor visits and outpatient services—will rise to $174.70 in 2024, up from $164.90 in 2023. If you rely on Medicare for healthcare, this increase could offset some of your COLA gains.
The Disability Digest is here to help you manage these changes. From balancing your SSDI income with rising Medicare costs to exploring healthcare options that fit your needs, we’re committed to helping you make the most of your benefits.
3. For Those Denied SSDI
Being denied SSDI can be discouraging, but don’t lose hope. Many individuals are denied benefits initially due to missing paperwork or insufficient medical evidence. Now is the time to strengthen your case and file an appeal, especially as the 2024 COLA increase provides a small financial cushion for future benefits.
The Disability Digest can help you build a stronger case, whether you’re preparing for an appeal or considering reapplying. We’ll guide you through gathering medical evidence and ensuring your claim is thorough and accurate. You deserve support to live comfortably, and we’re here to help you get it.
Medicare Adjustments Alongside the COLA Increase
With the 3.2% COLA increase for Social Security benefits comes changes to Medicare premiums:
Medicare Part B Premiums
In 2024, the standard Medicare Part B premium is $174.70 per month. While exact figures for 2025 haven’t been finalized, premiums typically increase annually based on healthcare cost projections. If your income is higher, you may also be subject to the Income-Related Monthly Adjustment Amount (IRMAA), which adjusts premiums for higher earners.
Medicare Part D (Prescription Drug Coverage)
Significant changes are coming to Medicare Part D in 2025 under the Inflation Reduction Act, including a new $2,000 cap on annual out-of-pocket costs for prescription drugs. This cap will provide major relief for those needing costly medications. Beneficiaries will also have the option to spread costs out over the year, easing the burden when filling prescriptions. Premiums are expected to remain stable, with some plans possibly seeing a slight decrease.
Implications of These Changes
For those on SSDI and Medicare, these premium increases may offset some benefits from the 2024 COLA adjustment. While the COLA offers a slight boost to cover rising living expenses, Medicare costs—particularly for high healthcare needs—may require you to reassess your budget.
Planning for the Future: Maximize Your Benefits
Navigating SSDI, Medicare, and COLA adjustments can be challenging, but you don’t have to do it alone. At The Disability Digest, we offer comprehensive resources and personalized support to help you make the most of your benefits. Whether you’re exploring healthcare options, managing rising costs, or considering part-time work while keeping your SSDI, we guide you through every step.
Our team is dedicated to helping you achieve the financial stability you deserve. With our free guidance, you’ll have the tools and knowledge you need to make informed decisions about your SSDI benefits and healthcare coverage.
Final Thoughts: You Are Not Alone
The 2024 COLA and Medicare premium changes will impact your daily life. Whether you’re applying for SSDI, appealing a denial, or managing your monthly budget, you deserve support and guidance. While the 3.2% COLA increase offers some relief, the rising Medicare premiums may require additional planning. Remember, The Disability Digest is here to help you every step of the way.