Medicare Part B Premiums, Deductibles Will Increase in 2024

Monthly Medicare Part B premiums will increase by nearly $10 in 2024 due to a projected increase in healthcare spending, CMS announced.

Medicare Part B covers physician services, outpatient hospital services, some home health services, durable medical equipment, and certain medical services that Medicare Part A does not cover.

The agency shared that Medicare Part B premiums will increase by $9.80 or almost 6 percent per month. The monthly premium is rising from $164.90 in 2023 to $174.70 in 2024. The annual deductible will also be higher, increasing $14 from $226 in 2023 to $240 in 2024.

The growth in the premium and deductible is primarily due to the expected increases in healthcare spending, CMS said. The remedy for the 340B-acquired drug payment policy for 2018 to 2022 included in the Hospital Outpatient Prospective Payment System (OPPS) also drove the increases.

Monthly Part B premiums are tied to a beneficiary’s income, meaning those with higher incomes will be subject to higher premiums. The majority of beneficiaries will not be impacted by this adjustment and will pay $174.70 per month. However, 8 percent of beneficiaries with incomes over $103,000 will receive adjustments ranging from $69.90 to $419.30 per month.

On the low end, those with incomes between $103,000 and $129,000 will have a monthly premium of $244.60. On the high end, beneficiaries making $500,000 or more will pay $594.00 per month.

Beneficiaries whose Medicare coverage ended 36 months after a kidney transplant can choose to continue Part B coverage of immunosuppressive drugs if they do not have another option for insurance. For these beneficiaries, the monthly premium will be $103.00 in 2024. However, depending on their income level, premiums may range between $171.70 and $515.10 per month.

Medicare Part A covers inpatient hospital services, skilled nursing facilities, hospice, inpatient rehabilitation, and some home healthcare services. Most Medicare beneficiaries do not pay a Part A premium as they have at least 40 quarters of Medicare-covered employment.

If admitted to the hospital, beneficiaries’ Part A deductible will increase by $32 from 2023 to $1,632. The deductible covers costs for the first 60 days of Medicare-covered inpatient hospital care. After 60 days, beneficiaries must pay a coinsurance of $408 per day, up from $400 in 2023. In skilled nursing facilities, the coinsurance for days 21 through 100 is rising from $200 per day in 2023 to $204 in 2024.

Beneficiaries 65 and older with fewer than 40 quarters of coverage and people with disabilities pay a monthly Part A premium. Beneficiaries with at least 30 quarters of coverage will pay $278 per month in 2024, the same as in 2023. Those with less than 30 quarters of coverage and certain beneficiaries with disabilities will pay the total amount of $505 per month.

CMS projected that Medicare Part D monthly premiums will be $55.50 in 2024. The agency shared the income-related adjustments to that premium in its recent fact sheet. Around 8 percent of beneficiaries with Part D coverage will receive adjustments ranging from $12.90 to $81.00.