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What is the Medicare Part B Premium Reimbursement or deductible for 2024?

Updated: Oct 28, 2023


Medicare Part B Premium Reimbursement or deductible for 2024

The Centers for Medicare & Medicaid Services (CMS) recently announced the Medicare premiums, deductibles, and coinsurance amounts for 2024. This includes details on the standard monthly Part B premium, the Part B deductible, and income-related monthly adjustment amounts for high-income beneficiaries.


Medicare Part B Basics

Medicare Part B helps pay for doctor visits, outpatient care, durable medical equipment, and other medical services. Most people pay a monthly premium for Part B coverage. In addition, there is an annual deductible that beneficiaries must pay out-of-pocket before Medicare starts covering services.


Here are some key things to know about Medicare Part B:

  • Coverage is optional, but most people with Medicare opt to enroll in Part B.

  • The standard premium is set each year based on projected costs.

  • Higher-income beneficiaries pay income-related monthly adjustment amounts on top of the standard premium.

  • Part B also has an annual deductible that beneficiaries must pay before coverage kicks in.

2024 Medicare Part B Premiums

For 2024, the standard monthly Part B premium will be $174.70 for most beneficiaries. This represents a $9.80 increase from the 2023 amount of $164.90.


The main factors behind this premium increase are:

  • Projected growth in healthcare spending - The 2024 premium is based on expenditures that Medicare expects to make for Part B services. With spending projected to increase, the standard premium rises to cover these costs.

  • Rising inflation - General inflation also impacts Medicare's expenditures and the calculation of premiums. Inflation has been high in 2022 and is expected to remain elevated in 2023.

  • Low 2023 premium increase - The monthly Medicare Part B covers and has only increased by $5.20 from 2022 to 2023. The higher increase for 2024 helps account for the previous year's minimal change.

Some beneficiaries will pay higher or lower premium amounts:

  • Those who enroll in Part B for the first time in 2024 will pay $240.90 per month. New enrollees cover about 25% of projected costs, versus continuing enrollees who cover just over 25%.

  • Beneficiaries who continue Part B coverage for immuno suppressive drugs will pay a reduced premium of $103 per month. This applies to beneficiaries who already paid premiums for 36 months after a kidney transplant.

  • High-income beneficiaries pay income-related monthly adjustment amounts ranging from $59.40 to $408.20 per month in addition to the standard premium. This affects individuals with adjusted gross incomes over $97,000 and married couples over $194,000.

Medicare Part B Deductible for 2024

In addition to premiums, Medicare Part B also has an annual deductible that beneficiaries must pay out-of-pocket before Medicare starts covering Part B services.


The 2024 Part B deductible will increase by $14 from 2023, rising to $240.


Beneficiaries must pay the Part B deductible before Medicare begins covering Part B services for the year. After meeting this deductible, beneficiaries typically pay 20% of the Medicare-approved cost for Part B services in coinsurance for the rest of the year until they reach the catastrophic coverage threshold.


The 14% increase in the Part B deductible for 2024 is based on the same factors impacting the growth in premiums - rising healthcare costs and inflation. This helps maintain the balance between premium income and deductible payments for the program.


Part B Premiums for High-Income Beneficiaries

Beneficiaries with higher incomes have paid increased Part B monthly premiums since 2007. These income-related monthly adjustment amounts (IRMAA) apply to about 7% of people with Medicare Part B.


In 2024, high-income beneficiaries will pay the following IRMAA surcharges on top of the standard $174.70 monthly Part B premium:

  • Individuals with incomes $97,000 to $123,000: $59.40 per month

  • Individuals with incomes $123,000 to $153,000: $ 164.90 in 2023

  • Individuals with incomes $153,000 to $183,000: $340.10 per month

  • Individuals with incomes above $183,000: $408.20 per month

  • Couples with incomes $194,000 to $246,000: $118.80 per month

  • Couples with incomes $246,000 to $306,000: $329.70 per month

  • Couples with incomes $306,000 to $366,000: $450.10 per month

  • Couples with incomes above $366,000: $546.60 per month

These income thresholds are frozen through 2024. But the IRMAA surcharges are increasing between $2.80 and $12.40 per month depending on income level.


Married couples who file separate tax returns and lived together at any point during the taxable year will pay IRMAA surcharges of up to $408.20 per person even if their individual income is below the threshold.


Medicare Part A Costs for 2024

Medicare Part A covers inpatient hospital, skilled nursing facility, and some home health care services. Most people don't pay a premium for Part A premium because they or their spouse paid Medicare payroll taxes for at least 10 years.


For beneficiaries who need to enroll in premium-based Part A coverage, the costs for 2024 are:

  • $506 per month for beneficiaries with less than 30 quarters of Medicare-covered employment

  • $278 per month for beneficiaries with 30-39 quarters of Medicare-covered employment

These represent a decrease of $1 in both premiums from the 2023 amounts.

In addition, the Part A deductible for inpatient hospital care will increase by $32 to $1,632 for each benefit period in 2024. Coinsurance amounts for longer hospital stays will also increase slightly.


Medicare Part D Costs for 2024

Medicare Part D is the prescription drug coverage program. Costs for 2024 include:

  • The maximum deductible will increase $15 to $505.

  • The initial coverage limit will increase from $4,660 to $4,890. This is the threshold before the coverage gap begins.

  • The maximum copays in the coverage gap will rise from $10 to $11 for generic drugs and from $40 to $44 for brand-name drugs.

  • Catastrophic coverage copays will increase from $3.95 to $4.15 for generics and from $9.85 to $10.35 for brands.

  • High-income Part D beneficiaries continue to pay income-related monthly adjustment amounts ranging from $0 to $88.50 per month.

Part B Savings for Lower-Income Beneficiaries

Many Medicare beneficiaries qualify for assistance programs that help cover Part B costs. These include:


Medicare Savings Programs

Medicare Savings Programs help pay Medicare premiums, deductibles, coinsurance, and copays if you meet certain income and asset limits.


Benefits can include paying the monthly Part B premium, annual deductible, and 20% coinsurance for Part B services.


There are 3 main Medicare Savings Programs:

  • Qualified Medicare Beneficiary (QMB): Covers monthly Part B premiums, deductibles, and coinsurance. Income limits up to $1,153/month for individuals or $1,546/month for couples.

  • Specified Low-Income Medicare Beneficiary (SLMB): Covers the monthly Part B premium only. Income limits up to $1,379/month for individuals or $1,851/month for couples.

  • Qualified Individual (QI): Covers the monthly Part B premium only. Income limits up to $1,549/month for individuals or $2,080/month for couples.

Medicare Part D Low-Income Subsidy

The Part D Low-Income Subsidy helps pay prescription drug costs if you have limited income and assets.


Benefits include lowering the Part D monthly premium, annual deductible, and prescription copays. Those who qualify pay no more than $4.15 per prescription in 2024 for each generic and $10.35 for each brand.


You can qualify for the full Low-Income Subsidy with incomes up to 150% of poverty, or $20,385/year for individuals and $27,465/year for couples. Partial subsidies are also available.


Conclusion

The standard Medicare Part B premium will increase in 2024 to $174.70 per month, up $9.80 from 2023. The Part B deductible is also rising to $ 240 in 2024. These changes are driven by projected growth in healthcare spending and inflation.


Higher-income beneficiaries continue paying income-related monthly adjustment amounts. But Medicare Savings Programs and the Low-Income Subsidy help millions of lower-income beneficiaries reduce their out-of-pocket costs.


Understanding the changes to Medicare Part B premiums, deductibles, and income adjustments can help you estimate your expected costs for 2024 coverage.


We’re Here to Help

You do not have to spend hours reading articles on the internet to get answers to your Medicare questions. Give the licensed insurance agents at Lane Financial Strategies a Call at (804) 897-2170. You will get the answers you seek in a matter of minutes, with no pressure and no sales pitch. We are truly here to help.


FAQs


What is the 2024 Medicare Part B standard premium?

The 2024 Medicare Part B standard premium is $164.90 per month. Medicare Part B beneficiaries should expect this figure.


How much will the Medicare Part A inpatient hospital deductible be in 2024?

The Medicare Part A inpatient hospital deductible will be $1,600 in 2024.


What is the deductible for Medicare Part B in 2024?

The annual deductible for Medicare Part B will be $226 in 2024.


How much will the monthly premium for Medicare Part B increase in 2024?

The monthly premium for Medicare Part B will increase by $5.20 to $164.90 in 2024.


What are the 2024 Medicare Parts A and B premiums and deductible ?

The 2024 Part A deductible is $1,600. The 2024 Part B standard monthly premium for Medicare is $164.90/month and deductible is $ 226 in 2023.


What is the income-related monthly adjustment for Medicare Part D in 2024?

The cms releases 2024 Medicare Parts A B and Part D premium. The 2024 Medicare Part D income-related monthly adjustment amounts range from $0 to $88.20 per month according to, social security administration or centers for Medicare and medicaid services (cms said). Regardless of the month in 2024 or unless the services not covered by Medicare Part B, pay the figures above.

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