Social Security Beneficiaries to Get Nearly 9% Increase; Medicare Premiums to Tick Down in 2023

The coming year is looking extra bright for approximately 70 million American beneficiaries.

Come January 2023, they will be seeing a significant 8.7% or more than $140 monthly increase in Social Security benefits, as a record cost-of-living adjustment (COLA) takes effect.

Supplemental Security Income (SSI) beneficiaries will be seeing bigger payments starting on December 30th, as well. From a $841 monthly payment in 2022, eligible individuals will be receiving $914 per month in 2023 while eligible couples will now be getting $1,371 per month from $1,261 per month.

This increase is due to the inflation surges, which has led to higher prices of goods, services, and overall cost-of-living. The Department of Labor’s Consumer Price Index (CPI-W) measures these costs, and has triggered an adjustment to help offset expenses.

The Social Security Administration will be providing notices to retirees, disability beneficiaries, survivors, SSI recipients, and representative payees throughout the month of December regarding new monthly benefits.

Alongside with this great news, Medicare premiums are also going down in 2023—giving seniors more peace of mind. Acting Commissioner Kilolo Kijakazi said that 2023’s substantial Social Security COLA adjustment is “the first time in a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned.”

Monthly premiums for Medicare Part B (which covers certain home health services, outpatient and physician services, durable medical equipment, and other services not covered by Medicare Part A) will be $164.90 a month in 2023. This is $5.20 lower than the $170.10 monthly charge in 2022.

The annual deductible for Medicare Part B beneficiaries will be at $226, which ticked down $7 from the $233 deductible in 2022.

Costs for Medicare Advantage and Medicare Part D prescription drug coverage will also drop.

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