The big announcements are here! The Social Security Administration recently released the official cost-of-living adjustment (COLA) for 2019, and the Centers for Medicare and Medicaid Services announced 2019 premiums.
On Thursday, October 11, SSA announced that the 2019 COLA will be 2.8%. Increased payments to beneficiaries will begin in January 2019 (increased payments to SSDI recipients will begin on December 31, 2018). Other changes to Social Security include the annual increase in maximum amount of wages subject to the Social Security tax. It will increase from $128,400 in 2018 to $132,900 in 2019. To see the full announcement, and links to fact sheets, click here.
On Friday October 12, CMS announced that the standard monthly premium for Medicare Part B enrollees will be $135.50 for 2019. This is an increase of $1.50 from 2018. An estimated 2 million Medicare beneficiaries (about 3.5%) will pay less than the full Part B premium as a result of being held harmless (the increase in their premiums can not exceed the increase in Social Security benefits). The annual deductible for Medicare Part B beneficiaries is $185 in 2019, an increase of $2. To see more information about income-related monthly adjustment amounts, and Part A premiums and deductibles, click here.