As we enter 2024, Medicare beneficiaries must be mindful of the changing costs associated with Original Medicare. Understanding these adjustments can help in planning for healthcare expenses for the year. Here's a breakdown of the expected costs for Medicare Part A and Part B in 2024.
Medicare Part A Costs: A Slight Shift
For those purchasing Medicare Part A coverage, the premiums show a marginal decrease from $506 in 2023 to $505 monthly. Fortunately, most beneficiaries will not be affected by this premium as they are not required to pay for Medicare Part A. On the other hand, the deductible for inpatient hospitalization sees an uptick, from $1,600 to $1,632 per benefit period.
Inpatient hospital coinsurance rates will also rise, costing $408 per day for days 61 through 90. Post the 90th day, a "lifetime reserve day" will cost $816, with a cap at a 60-day lifetime maximum. Skilled nursing facility coinsurance will also increase to $204 daily for days 21 through 100 for each benefit period, up from the previous $200 daily charge.
Understanding Medicare Part B Premiums
The standard monthly premium for Medicare Part B is rising, from $164.90 in 2023 to $174.70 in 2024. This hike is attributed to anticipated increases in healthcare spending. Additionally, higher-income people will face an Income-Related Monthly Adjustment Amount (IRMAA), which adds to the standard premium based on their modified adjusted gross income (MAGI) from their federal tax returns two years prior.
The chart below outlines the Total monthly Part B premium and applies to 2024 as follows:
You filed an individual income tax return with MAGI that was:
You filed a joint income tax return with MAGI that was:
You filed an income tax return as married filing separately with MAGI that was:
Total monthly Part B premium in 2024 is:
*Total monthly premium in 2024 immunosuppressive drug coverage only is:
$103,000 or less
$206,000 or less
$103,000 or less
Above $103,000 up to $129,000
Above $206,000 up to $258,000
Above $129,000 up to $161,000
Above $258,000 up to $322,000
Above $161,000 up to $193,000
Above $322,000 up to $386,000
Above $193,000 and less than $500,000
Above $386,000 and less than $750,000
Above $103,000 and less than $397,000
$500,000 and above
$750,000 and above
$397,000 and above
*This premium applies to a benefit that extends coverage for immunosuppressive drugs for people whose full Medicare coverage ended 36 months after a kidney transplant and who do not have certain other types of health insurance.
Part D and Additional Costs
Higher-income beneficiaries will also see a premium increase for the Medicare Part D prescription drug plan due to IRMAA, like Part B adjustments. While premiums for Part D vary, the average basic monthly premium is set to rise to $34.50. Interestingly, the average premium for plans with enhanced coverage is projected to drop slightly to $55.50.
Moreover, before Original Medicare begins to cover costs, individuals must first meet an annual deductible, which, for Medicare Part B, has been set at $240 for 2024—marking an increase from $226 in 2023.
Staying informed about these changes ensures that individuals can better manage their healthcare spending and avoid unexpected financial burdens. As always, reviewing your coverage options and costs is crucial to make the most informed decisions regarding your healthcare needs in the coming year.
For more detailed information on Medicare costs and adjustments for 2024, refer to the Centers for Medicare & Medicaid Services for the latest updates and guidance.