On October 12, 2023, the Centers for Medicare & Medicaid Services (CMS) announced the rates for premiums, deductibles, and coinsurance for Medicare Part A and Part B for 2024. Additionally, they unveiled the income-associated monthly modifications for Medicare Part D for the same year.
Over 10 million individuals benefit from the Medicare Savings Programs (MSPs) that assist with Medicare premiums and often other associated costs. In a bid to enhance healthcare accessibility and reduce expenses for numerous Americans, the Health and Human Services Department (HHS) has, via CMS, put into effect a new regulation to simplify the MSPs enrollment process.
This change is anticipated to make coverage more budget-friendly for roughly 860,000 individuals. Additionally, the Part D subsidy for low-income individuals aids in covering the Part D premium and reduces prescription drug prices. Moreover, thanks to the Inflation Reduction Act, there’s now an increase in the number of beneficiaries eligible for the full LIS (Laboratory Information System).
Premium and Deductible for Medicare Part B
Medicare Part B provides coverage for services such as doctor visits, outpatient hospital care, specific home health services, durable medical equipment, and other particular medical and health services not included under Medicare Part A.
The annual rates for Medicare Part B’s premium, deductible, and coinsurance are set in line with the guidelines in the Social Security Act. For 2024, the regular monthly premium for those enrolled in Medicare Part B will be $174.70, marking a rise of $9.80 from the 2023 rate of $164.90. Additionally, the yearly deductible for everyone under Medicare Part B will set them back $240 in 2024, which is $14 more than the 2023 deductible of $226.
The rise in the standard premium and deductible for Part B in 2024 primarily stems from anticipated growth in healthcare expenditure and, to a smaller extent, adjustments related to the payment policy for 340B-acquired drugs from 2018-2022 under the Hospital Outpatient Prospective Payment System.
From 2023 onwards, individuals who lost their full Medicare benefits 36 months post-kidney transplant and lack specific other insurance coverages can choose to maintain their Part B coverage for immunosuppressive medications by contributing a premium. The set premium for these immunosuppressive medications in 2024 stands at $103.00.
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Medicare Part B Income-Related Monthly Adjustment Amounts
Starting from 2007, the monthly premium for a beneficiary’s Part B has been determined by their income. These income-related monthly adjustments impact approximately 8 percent of Medicare Part B participants. The table below displays the complete 2024 Part B premiums for high-earning beneficiaries who have comprehensive 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 who only have immunosuppressive drug coverage are shown in the following table:
Medicare 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 |
For high-earning beneficiaries who have comprehensive Part B coverage, are married, and cohabited with their spouse at any point within the taxable year but submit individual tax returns, the premiums are detailed as 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 |
Part A Premium and Deductible
Medicare Part A encompasses services such as hospital stays, skilled nursing facilities, hospice care, inpatient rehabilitation, and certain home healthcare provisions. Roughly 99% of those enrolled in Medicare don’t pay a Part A premium, given that they’ve accumulated a minimum of 40 quarters of employment covered by Medicare, as verified by the Social Security Administration.
In 2024, the deductible for Medicare Part A inpatient hospital stays will be set at $1,632, reflecting a rise of $32 from the 2023 rate of $1,600. This deductible applies to the beneficiary’s portion of expenses for the initial 60 days of inpatient care covered by Medicare in any given benefit duration. For 2024, should a hospital stay extend beyond 60 days, beneficiaries will be charged a daily coinsurance of $408 from the 61st to the 90th day (compared to $400 in 2023). For any lifetime reserve days used, the daily cost will be $816 in 2024, up from $800 in 2023. For those utilizing skilled nursing facilities, the coinsurance rate for days 21 to 100 of continued care services within a benefit cycle will rise to $204.00 in 2024, up from $200.00 in 2023.
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Medicare Part A Deductible and Coinsurance for 2023 and 2024 based on Type of Cost Sharing
| Deductible and Coinsurance | 2023 | 2024 |
| Inpatient hospital deductible | $1,600 | $1,632 |
| Daily hospital coinsurance for 61st-90th day | $400 | $408 |
| Daily hospital coinsurance for lifetime reserve days | $800 | $816 |
| Skilled nursing facility daily coinsurance (days 21-100) | $200.00 | $204.00 |
Individuals aged 65 and above with less than 40 quarters of coverage, along with some individuals with disabilities, opt for a monthly premium to voluntarily sign up for Medicare Part A. Those with a minimum of 30 quarters of coverage or who are married to someone meeting those criteria can access Part A by paying a reduced monthly premium.
This fee will remain consistent at $278 in 2024, unchanged from 2023. On the other hand, specific elderly individuals without insurance and under 30 quarters of coverage, as well as certain disabled individuals who have used up other entitlements, will be subjected to the full premium. This will amount to $505 monthly in 2024, showing a slight reduction of $1 from the previous year.
Part D Income-Related Monthly Adjustment Amounts
Starting from 2011, a beneficiary’s Part D monthly premium has been determined by their income level. This income-tied monthly adjustment impacts about 8 percent of Medicare Part D enrollees. These beneficiaries will cover the income-related adjustment in conjunction with their standard Part D premium. While Part D premiums fluctuate based on the plan, irrespective of the payment method a beneficiary uses for their Part D premium, the income-tied monthly adjustment amounts are either subtracted from their Social Security benefits or remitted directly to Medicare.
Approximately two out of three beneficiaries directly pay their premiums to their chosen plan, with the rest having deductions made from their Social Security benefits. The subsequent table displays the 2024 Part D income-tied monthly adjustment figures for high-earning beneficiaries:
| 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 but file a separate return are as follows:
| 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 |
For more information about Medicare changes for 2024, you can contact Medicare.gov or speak with a Medicare Professional at MyMedicareSupplementPlan.org at 844-528-8688 to learn how to forgo most deductibles and coinsurance costs.
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