2024 Medicare Parts A & B Premiums and Deductibles
2024 Medicare Parts A & B Premiums and Deductibles
The Centers for Medicare & Medicaid Services (CMS) announced the updated premium, deductible, and coinsurance amounts for Medicare Parts A & B for 2024. These updates impact millions of Medicare beneficiaries and are crucial for managing healthcare costs under the Medicare program. Along with these updates, income-related adjustments affect higher-income beneficiaries, ensuring that Medicare remains financially sustainable while continuing to provide essential services.
Medicare Part B Premiums and Deductibles
Medicare Part B provides coverage for physician services, outpatient hospital care, durable medical equipment, and certain home health services. It plays an essential role in helping Medicare beneficiaries manage their health needs.
For 2024, the standard monthly premium for Part B enrollees will increase to $174.70, up from $164.90 in 2023, an increase of $9.80. Additionally, the annual deductible will rise to $240, up by $14 from $226 in 2023. The increase in these amounts is driven primarily by projected increases in healthcare spending.
Medicare Part B also covers immunosuppressive drugs for individuals who have had a kidney transplant and whose full Medicare coverage ended 36 months after the surgery. For 2024, the premium for this coverage will be $103.00.
Medicare Part B Income-Related Monthly Adjustment Amounts
Since 2007, the monthly premium for Medicare Part B has been adjusted based on income, with higher-income beneficiaries paying more for their coverage. The Income-Related Monthly Adjustment Amounts (IRMAA) for 2024 are as follows:
Medicare Part B Immunosuppressive Drug Coverage Only
For beneficiaries who only have Part B coverage for immunosuppressive drugs, the premiums for 2024 vary by income as follows:
Medicare Part A Premium and Deductible
Medicare Part A provides coverage for inpatient hospital care, skilled nursing facilities, hospice care, and some home health services. Most beneficiaries (around 99 percent) do not pay a premium for Medicare Part A because they have worked at least 40 quarters in Medicare-covered employment.
For 2024, the inpatient hospital deductible will increase to $1,632, up from $1,600 in 2023. After the first 60 days of Medicare-covered inpatient hospital care, beneficiaries will pay the following coinsurance amounts:
Medicare Savings Programs and Assistance
The Medicare Savings Programs (MSPs) help over 10 million people pay for Medicare premiums and other cost-sharing expenses. In 2024, CMS has finalized new rules to simplify enrollment, making it easier for about 860,000 people to qualify for affordable Medicare coverage.
Additionally, the Part D low-income subsidy (LIS) helps pay for prescription drug premiums and reduces medication costs. Thanks to recent changes under the Inflation Reduction Act, more individuals will qualify for the full LIS benefit, lowering their prescription drug costs.
Medicare Part D Income-Related Monthly Adjustment Amounts
Similar to Part B, Medicare Part D premiums are subject to income-related adjustments for high-income beneficiaries. The income brackets mirror those of Part B, and the adjustments for 2024 are as follows:
These tables help simplify the complex details around Medicare costs, allowing beneficiaries to easily identify their income bracket and the corresponding premium or adjustment amount for 2024. For more information or to confirm your coverage, visit the official Medicare website or consult with your healthcare provider.
