In March 2023, the Medicare Trustees estimated that the 2024 Medicare Part B premium increase would be 6%. However, many thought that the 2024 Medicare Part B premium would rise higher because of the recent Food and Drug Administration (FDA) approval of the Alzheimer’s medication Leqembi. This was based on 2022’s premium increase history.
The 2022 Part B premium experienced a 15% increase after Alzheimer’s medication Aduhelm was approved, with the Centers for Medicare and Medicaid Services (CMS) later admitting to overestimating those costs, causing a 3% decrease in premiums for 2023.
Medicare beneficiaries everywhere are sighing a sigh of relief to know that history won’t be repeating itself. At least, not in 2024.
Wondering about Part B Medicare coverage? Read “What is Medicare Part B and What Does it Cover?”
The 2024 standard monthly Medicare Part B premium will increase by 6% between 2023’s $164.90 per month and 2024’s $174.70. An annual increase of $117.60 per person and $235.20 for couples. That comes out to be $9.80 more per month, per person.
The rate of increase is nearly equal to what was experienced in 2020 – a 7% increase.
|Year||Medicare Part B Premium||% of Annual Change|
Your Medicare Part B premium could be higher depending on your income. Suppose your Modified Adjusted Gross Income (MAGI), as reported on your IRS tax return from two years ago, is higher than a certain amount. In that case, you’ll pay the standard premium and an Income Related Monthly Adjustment Amount (IRMAA).
IRMAA is an extra charge beneficiaries pay in addition to the standard premium.
Review the table below to see how much your monthly Part B premium will be – depending on your income from two years ago.
|File individual tax return||File joint tax return||File married & separate tax return||You pay each month|
|$103,000 or less||$206,000 or less||$103,000 or less||$174.70|
|Above $103,000 up to $129,0000||Above $206,000 up to $258,000||Not applicable||$244.60|
|Above $129,000 up to $161,0000||Above $258,000 up to $322,000||Not applicable||$349.40|
|Above $161,000 up to $193,000||Above $322,000 up to $386,000||Not applicable||$454.20|
|Above $193,000 and less than $500,000||Above $386,000 and less than $750,000||Above $103,000 and less than $397,000||$559.00|
|$500,000 or above||$750,000 or above||$397,000 or above||$594.00|
The Part B premium will be automatically deducted from your benefit payment if you receive a Social Security, Railroad Retirement Board, or Office of Personnel Management benefit. If you don’t receive these benefits, you’ll receive a monthly or quarterly premium invoice.
“There are several ways to reduce your Medicare Part B premium. You can appeal your IRMAA adjustment, explore Medicare Advantage plans, or if you’re low-income there are programs that can help.“
There are some situations where you can appeal an IRMAA adjustment. These include having the IRMAA based on a tax amount that is inaccurate or out-of-date or one of seven life-changing events.
These seven life-changing events include:
When any of these occur, you can request an appeal in writing by completing a request for reconsideration form with the Social Security Administration. You can also call the Social Security Administration at 1-800-772-1213.
Paying a monthly premium and looking for ways to reduce it? If you are lower-income and meet specific criteria, you may qualify for a Medicare Savings Program. Three programs (Qualified Medicare Beneficiary Program, Specified Low-Income Beneficiary Program, and Qualifying Individual Program) could help you pay for all or most of your Medicare Part B premium.
Also, some Medicare Advantage plans can reduce the cost of the Part B premium through a give-back benefit.
To see if you qualify for a Medicare Savings Program or a give-back benefit, speak to a local licensed Connie Health agent who can help you navigate your Medicare journey. Call (623) 223-8884.
The Part B deductible is the amount you pay for your prescriptions and healthcare before Original Medicare Part B starts paying for your healthcare expenses. The deductible is annual and resets each year. The amount of the deductible also changes annually.
Each year that you’re enrolled in Medicare Part B, you must pay your deductible out-of-pocket before Medicare will pay for coverage. Almost any item or service that Part B covers counts towards your annual deductible.
In 2024, the Medicare Part B deductible is $240. That is an increase from $226 in 2023, or $14.00 annually (6%).
For the most part, the Medicare Part B deductible and premium change at the same percentage rate each year. There have been only a couple of years since 2011 when the deductible has increased at a higher percentage than the Part B premium.
|Year||Medicare Part B Deductible||% of Annual Change|
After your deductible is met ($240 in 2023), you pay 20% coinsurance for Medicare-approved doctor services, outpatient therapies, and Durable Medical Equipment (DME).
Original Medicare does not have a maximum on these out-of-pocket expenses. This is why most Medicare enrollees have either Medicare Supplemental insurance plus their Medicare prescription drug coverage (Medicare Part D plan). Or they choose to enroll in a Medicare Advantage Prescription Drug Plan, which covers all of these needs.
Review the table below to learn what coinsurance and copayments are typical to pay under Medicare Part B.
|General costs for services (coinsurance)||20% of Medicare-approved services or items after your deductible is paid. The doctor or health care provider must accept the Medicare-approved amount as full payment, also called “accepting assignment.”||Check with your local licensed agent.|
|Clinical laboratory services||$0 for covered clinical laboratory services. Check with your local licensed agent.||$0 for covered clinical laboratory services. Check with your local licensed agent.|
|Home health care||20% of the Medicare-approved amount for Durable Medicare Equipment (DME). This includes wheelchairs, walkers, hospital beds, and other equipment.||$0 for covered home health care services. Check with your local licensed agent.|
|Inpatient hospital care||20% of the Medicare-approved amount for services while you’re inpatient at a hospital.||Check with your local licensed agent.|
|Outpatient mental health care||20% of the Medicare-approved amount to your doctor or healthcare provider for diagnosing or treating your condition.||7%|
|Partial hospitalization mental health care||Partial hospitalization mental health care 20% of the Medicare-approved amount after you meet the Medicare Part B deductible. This includes services from your doctor and other qualified mental health professionals. Coinsurance applies for each day of partial hospitalization services received in a hospital outpatient setting or a community mental health center.||Check with your local licensed agent.|
|Outpatient hospital care||20% of the Medicare-approved amount for services provided by a doctor or other health care providers.||Copayment is due to the hospital for each service you get in a Medicare-covered hospital outpatient setting, except for some preventative services. Your copayment, in most cases, won’t be more than the Medicare Part A hospital stay deductible amount.|
Read more by David Luna
I am a Spanish-speaking Arizona Life and Health Insurance Licensed Agent and have been helping people with Medicare since 2005. I am a Marine Corps Veteran & former police officer. I enjoy watching football and basketball but hold family time in the highest regard.