Medicare Part B covers a range of medical services, including doctor visits, outpatient care, and durable medical equipment. Understanding the costs associated with Part B is crucial for beneficiaries. This guide breaks down the 2024 premiums, deductibles, and income-related adjustments, providing a clear picture of How Much Will Medicare Part B Cost.
In October 2023, the Centers for Medicare & Medicaid Services (CMS) announced the 2024 rates for Medicare Parts A and B, as well as Part D income-related monthly adjustment amounts. These changes reflect adjustments to healthcare spending and other policy considerations.
Standard Medicare Part B Premium and Deductible in 2024
The standard monthly premium for Medicare Part B enrollees in 2024 is $174.70, an increase of $9.80 from the 2023 premium of $164.90. The annual deductible for all Medicare Part B beneficiaries is $240 in 2024, which is $14 higher than the 2023 deductible of $226.
This increase is primarily due to projected increases in overall healthcare spending. A portion of the increase also addresses the remedy for the 340B-acquired drug payment policy affecting the Hospital Outpatient Prospective Payment System from 2018-2022.
Income-Related Monthly Adjustment Amounts (IRMAA) for Part B
A beneficiary’s Part B monthly premium is based on their income. This income-related monthly adjustment, known as IRMAA, affects approximately 8% of Medicare Part B beneficiaries. The following tables outline the 2024 Part B total premiums for high-income beneficiaries with full Part B coverage.
Full 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 |
Part B Immunosuppressive Drug Coverage Only
Individuals who had a kidney transplant and whose full Medicare coverage ended 36 months after the transplant can elect to continue Part B coverage of immunosuppressive drugs by paying a premium, if they don’t have other qualifying insurance. For 2024, the standard immunosuppressive drug premium is $103.00. The table below outlines the income-related monthly adjustment amounts for those with 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 |
Married Filing Separately – Full Part B Coverage
Premiums for high-income beneficiaries with full Part B coverage 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 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 |
Married Filing Separately – Part B Immunosuppressive Drug Coverage Only
Premiums for high-income beneficiaries with immunosuppressive drug only Part B coverage 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 | Total Monthly Premium Amount |
|---|---|---|
| Less than or equal to $103,000 | $0.00 | $103.00 |
| Greater than $103,000 and less than $397,000 | $377.70 | $480.70 |
| Greater than or equal to $397,000 | $412.10 | $515.10 |
Medicare Savings Programs (MSPs) and Part D Low-Income Subsidy (LIS)
The Medicare Savings Programs (MSPs) are available to help individuals with limited income and resources cover the costs of Medicare premiums and, in many instances, other cost-sharing expenses. CMS is working to streamline enrollment in MSPs, potentially making coverage more affordable for an estimated 860,000 people. The Part D low-income subsidy (LIS) helps pay for Part D premiums and lowers prescription drug costs.
Medicare Part A Costs
While this article focuses on Part B costs, it’s important to understand Part A as well. Most Medicare beneficiaries don’t pay a Part A premium because they have worked at least 40 quarters in Medicare-covered employment. However, in 2024, the Medicare Part A inpatient hospital deductible is $1,632, an increase of $32 from 2023.
| Type of cost sharing | 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 who don’t qualify for premium-free Part A may be able to buy into Part A. In 2024, the monthly premium for those with at least 30 quarters of coverage is $278, while the full premium for those with less than 30 quarters of coverage is $505.
Understanding Medicare Part D Costs
Medicare Part D covers prescription drugs, and like Part B, it can have income-related monthly adjustment amounts. These adjustments affect approximately 8% of people with Medicare Part D and are paid in addition to the Part D premium.
| 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 |
Table – 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 |
Planning for Medicare Part B Costs in 2024
Understanding how much will Medicare Part B cost in 2024 is essential for budgeting and financial planning. Be sure to consider the standard premium, deductible, and any potential income-related adjustments. Explore available resources like Medicare Savings Programs and the Part D Low-Income Subsidy to help manage these expenses. Staying informed allows you to make the best decisions for your healthcare needs and financial well-being.
