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

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