On October 12th, the Centers for Medicare & Medicaid Services (CMS) released the 2024 Medicare premiums, deductibles and coinsurance amounts for Medicare Parts A and B, as well as the Medicare Part D income-related monthly adjustment amounts.
Medicare Part B Premium & Deductible
Medicare Part B is outpatient insurance. It covers some doctors’ fees, outpatient hospital visits and other specified medical services and supplies not covered by Medicare Part A. Each year, the Part B premium, deductible and coinsurance rates are determined according to provisions of the Social Security Act.
In 2024, the standard monthly premium for Medicare Part B enrollees will be $174.70, an increase of $9.80 from the $164.90 premium in 2023. The annual deductible for all Medicare Part B beneficiaries will be $240, an increase of $14 from the annual deductible of $226 in 2023.
According to the CMS, the increase in the 2024 Part B standard premium and deductible is largely due to projected increases in healthcare spending and, to a lesser degree, the remedy for the 340B-acquired drug payment policy for the 2018 to 2022 period under the Hospital Outpatient Prospective Payment System.
Beginning in 2024, Medicare enrollees who are 36 months post-kidney transplant–and therefore no longer eligible for full Medicare coverage–can choose 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 Income-Related Monthly Adjustments
Since 2007, the Medicare Part B monthly premium amount has been based on a beneficiary’s income. These income-related monthly adjustment amounts affect around eight percent of those with Medicare Part B coverage. The 2024 Part B total premiums for high-income beneficiaries with full Part B coverage are shown in the table below:
|
Full Part B Coverage |
|||
|
Beneficiaries who file individual tax returns with modified adjusted gross income: |
Beneficiaries who file joint tax returns with modified adjusted gross income: |
Income-Related Monthly Adjustment Amount |
Total Monthly Premium Amount |
|
Less than or equal to $103,000 |
Less than or equal to $206,000 |
$0.00 |
$174.70 |
|
Greater than $103,000 and less than or equal to $129,000 |
Greater than $206,000 and less than or equal to $258,000 |
$69.90 |
$244.60 |
|
Greater than $129,000 and less than or equal to $161,000 |
Greater than $258,000 and less than or equal to $322,000 |
$174.70 |
$349.40 |
|
Greater than $161,000 and less than or equal to $193,000 |
Greater than $322,000 and less than or equal to $386,000 |
$279.50 |
$454.20 |
|
Greater than $193,000 and less than $500,000 |
Greater than $386,000 and less than $750,000 |
$384.30 |
$559.00 |
|
Greater than or equal to $500,000 |
Greater than or equal to $750,000 |
$419.30 |
$594.00 |
The 2024 Part B total premiums for high-income beneficiaries with immunosuppressive drug-only Part B coverage are:
| Part B Immunosuppressive Drug Coverage Only | |||
| Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Income-Related Monthly Adjustment Amount | Total Monthly Premium Amount |
| Less than or equal to $103,000 | Less than or equal to $206,000 | $0.00 | $103.00 |
| Greater than $103,000 and less than or equal to $129,000 | Greater than $206,000 and less than or equal to $258,000 | $68.70 | $171.70 |
| Greater than $129,000 and less than or equal to $161,000 | Greater than $258,000 and less than or equal to $322,000 | $171.70 | $274.70 |
| Greater than $161,000 and less than or equal to $193,000 | Greater than $322,000 and less than or equal to $386,000 | $274.70 | $377.70 |
| Greater than $193,000 and less than $500,000 | Greater than $386,000 and less than $750,000 | $377.70 | $480.70 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $412.10 | $515.10 |
The 2024 premiums for high-income beneficiaries with full Part B coverage, who are married and lived with their spouse at any time during the taxable year, yet file a separate return, are below:
| Full Part B Coverage | ||
| Beneficiaries who are married and lived with their spouses at any time during the year, but who file separate tax returns from their spouses, with modified adjusted gross income: | Income-Related Monthly Adjustment Amount | Total Monthly Premium Amount |
| Less than or equal to $103,000 | $0.00 | $174.70 |
| Greater than $103,000 and less than $397,000 | $384.30 | $559.00 |
| Greater than or equal to $397,000 | $419.30 | $594.00 |
The 2024 premiums for high-income beneficiaries with immunosuppressive drug-only Part B coverage, who are married and lived with their spouse at any time during the taxable year, yet file a separate return, are below:
| Part B Immunosuppressive Drug Coverage Only | ||
| Beneficiaries who are married and lived with their spouses at any time during the year, but who file separate tax returns from their spouses, with modified adjusted gross income: | Income-Related Monthly Adjustment Amount | Total Monthly Premium Amount |
| Less than or equal to $103,000 | $0.00 | $103.00 |
| Greater than $103,000 and less than $397,000 | $377.70 | $480.70 |
| Greater than or equal to $397,000 | $412.10 | $515.10 |
Medicare Part A Premium & Deductible
Medicare Part A is hospital insurance. It covers some inpatient hospital care, limited skilled nursing care, hospice care and other specified services. Around 99 percent of Medicare beneficiaries do not have a Part A premium, since they have at least 40 quarters of Medicare-covered employment, as determined by the Social Security Administration.
For Part A, the inpatient hospital deductible will be $1,632 in 2024, an increase of $32 from 2023. This Part A inpatient hospital deductible covers a Medicare beneficiary’s’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period.
In 2024, Medicare Part A beneficiaries must pay a coinsurance amount of $408 per day for the 61st through 90th day of an inpatient hospitalization (compared to $400 in 2023) in a benefit period, and $816 per day for lifetime reserve days (compared to $800 in 2023). For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $204 in 2024 (compared to $200 in 2022).
Medicare Part D Income-Related Monthly Adjustments
Medicare Part D, or prescription drug plans (PDPs), help pay the cost of prescription medications. PDPs are offered by private insurance companies and cover a portion of your prescription drug expenses.
For Part D, the monthly premiums of higher-income beneficiaries are adjusted based on income. These monthly adjustment amounts only affect around eight percent of people with Medicare Part D coverage. These beneficiaries will pay the monthly adjustment amount, along with their Part D premium.
The 2024 Medicare Part D income-related monthly adjustment amounts for high-income beneficiaries are shown below:
| Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Income-related monthly adjustment amount |
| Less than or equal to $103,000 | Less than or equal to $206,000 | $0.00 |
| Greater than $103,000 and less than or equal to $129,000 | Greater than $206,000 and less than or equal to $258,000 | $12.90 |
| Greater than $129,000 and less than or equal to $161,000 | Greater than $258,000 and less than or equal to $322,000 | $33.30 |
| Greater than $161,000 and less than or equal to $193,000 | Greater than $322,000 and less than or equal to $386,000 | $53.80 |
| Greater than $193,000 and less than $500,000 | Greater than $386,000 and less than $750,000 | $74.20 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $81.00 |
Premiums for high-income beneficiaries who are married and lived with their spouse at any time during the taxable year, yet file a separate return, are below:
| Beneficiaries who are married and lived with their spouses at any time during the year, but file separate tax returns from their spouses, with modified adjusted gross income: | Income-related monthly adjustment amount |
| Less than or equal to $103,000 | $0.00 |
| Greater than $103,000 and less than $397,000 | $74.20 |
| Greater than or equal to $397,000 | $81.00 |
…
Medicare open enrollment for 2024 runs from October 15th to December 7th, 2023. During this open enrollment period, Medicare-eligible individuals can compare 2024 coverage options between Original Medicare, Medicare Advantage and Part D prescription drug plans. For help navigating this year’s open enrollment period, contact Crumes Insurance today. Consultations are always free and utilizing a licensed insurance consultant doesn’t cost you anything!
Source: CMS.go9