Last updated on December 7th, 2023 at 11:59 am
The Centers for Medicare & Medicaid Services (CMS) update Medicare premiums, deductibles, and coinsurance amounts for Part A and Part B, and the Medicare Part D income-related monthly adjustment amounts known as IRMAA annually. CMS recently announced the 2024 changes and we’ve summarized these below.
Medicare Part B Premium & Deductible
The standard monthly premium for Medicare Part B enrollees will be $174.70 in 2024, an increase of $9.80 ($164.90) in 2023. The annual deductible for all Medicare Part B beneficiaries will be $240 in 2024, an increase of $14 from the annual deductible of $226 in 2023.
Medicare Part B covers physicians’ services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered by Medicare Part A.
Beginning in 2023, individuals whose full Medicare coverage ended 36 months after a kidney transplant and who do not have certain other types of insurance coverage can elect to continue Part B coverage of immunosuppressive drugs by paying a premium. For 2024, the standard immunosuppressive drug premium is $103.00.
Medicare Part B & Part D Income-Related Monthly Adjustment Amounts known as IRMAA
If your income is over certain thresholds, Medicare charges an additional amount called “IRMAA” for Part B and Part D. “IRMAA” stands for Income Related Monthly Adjustment Amount. Below are the IRMAA amounts for 2024 for Part B and Part D. Note that Medicare looks back at your income that you reported on your tax return from 2-years prior to determine IRMAA. If IRMAA applies to you, but you had a major life-changing event and your income has gone down, you may request a reduction in your IRMAA by completing SSA Form-44.
For information on paying these Medicare premiums, visit: https://www.medicare.gov/basics/costs/pay-premiums.
|If your MAGI* (modified adjusted gross income) from 2022 was:||What you pay in 2024 (per person) in monthly premiums to Medicare:|
|If you file an individual tax return||If you file a joint tax return||If you file a married but separate tax return||Part B Premium + IRMAA||Part D IRMAA (in addition to your Part D premium)|
|$103,000 or less||$206,000 or less||$103,000 or less||$174.70||NA|
|$103,001 – $129,000||$206,001 – $258,000||NA||$244.60||$12.90|
|$129,001 – $161, 000||$258,001 – $322,000||NA||$349.40||$33.30|
|$161,001 – $193,000||$322,001 – $386,000||NA||$454.20||$53.80|
|$193,001 – $499,999||$386,001 – $749,999||$103,001 – $397,000||$559.00||$74.20|
|$500,000 +||$750,000 +||$397,000 +||$594.00||$81.00|
|*Adjusted Gross Income (Form 1040 line 11) + Tax Exempt Interest (Form 1040 line 2a)|
Part A Premium
Medicare Part A is known as “hospital insurance” and covers inpatient hospital, skilled nursing facility, hospice, inpatient rehabilitation, and some healthcare services. For 99% of Medicare beneficiaries, Part A is premium-free because they have at least 40-quarters of Medicare covered employment.
For those that don’t qualify, Part A can be purchased for a monthly premium of $505 in 2024. For certain individuals who qualify, a reduced Part A premium of $278 will apply.
Part A Deductible
The Medicare Part A deductible for inpatient hospital services will be $1,632 in 2024, a $32 increase from 2023 ($1,600). This Part A deductible covers beneficiaries share of costs for the first 60 days of a Medicare covered inpatient hospital stay in a benefit period. A benefit period begins when you enter the hospital and ends when you are out for 60 days in a row.
For days 61-90 of hospitalization, beneficiaries must pay a coinsurance amount of $408 per day in 2024 (up from $400 in 2023). Original Medicare covers up to 90 days of inpatient hospital care each benefit period. You also have an additional 60 days of coverage, called “lifetime reserve days”. These 60 days can be used only once, and you will pay a coinsurance for each one at $816 per day in 2024 (up from $800 per day in 2023). Keep in mind that many Medicare insurance plans cover this deductible and/or help pay inpatient hospital copays.
Skilled Nursing Facility Coinsurance
For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21-100 of extended care services in a benefit period is increasing from $204 in 2024 (up from $200 in 2023). Coinsurance for days 1-20 is $0 per day. Many Medicare insurance plans help cover these coinsurance costs.
Special Enrollment Circumstances2
You can make changes to your Medicare Advantage and Medicare Part D drug coverage when certain events happen in your life, like if you move, you lose your other coverage, you are impacted by a natural disaster or other emergency, and more. These chances to make changes are called Special Enrollment Periods (SEP). The type of changes you can make and the timing depend on your life event.
Starting January 1, 2024, if you sign up for Part A and/or Part B because of an exceptional situation, you’ll have 2-months to join a Medicare Advantage plan (with or without drug coverage) or a Medicare Part D Drug plan.
If you miss an enrollment period because of certain exception circumstances, like being impacted by a natural disaster or an emergency, incarceration, or losing Medicaid coverage. Medicare has the ability to offer a special exception if you missed your enrollment window for a good reason. You’ll need to contact Medicare directly to request a special enrollment exception. For more information, visit Medicare.gov or call 1-800-MEDICARE (1-800-633-4227). TYY users can call 1-877-486-2048.