There were close to 66 million people enrolled in some form of Medicare insurance in the United States in 2023, according to the Centers for Medicare & Medicaid Services. In 2024, each one of these beneficiaries may be facing cost changes to Medicare Part B.
Most Medicare beneficiaries enroll in Part B when they’re first eligible in order to avoid late enrollment penalties. Part B (medical insurance) helps cover a portion of the cost for medically necessary outpatient health care services from physicians and other health care providers. Benefits include some home health care services, durable medical equipment, mental health care, preventive care services, and more.
Whether you get your Part B benefits through Original Medicare or you’re enrolled in a Medicare Advantage (MA) plan, you should be aware of changes that will take effect on January 1, 2024. Here’s a look at what to expect.
What cost changes are coming to Medicare Part B in 2024?
The increase in the Medicare Part B standard premium and deductible for 2024 is mainly because of projected increases in health care spending.
Standard Part B monthly premium
Every year, Medicare beneficiaries usually expect to see their Part B standard monthly premium increase a bit. However, in 2023, they were surprised when the 2022 premium of 170.10 went down to 164.90 per month in 2023.
Unfortunately, the news for 2024 isn’t as bright, because the Medicare Part B monthly premium is going back up to 174.70 – an increase of $9.80 per month.
Most Medicare enrollees – whether they have Original Medicare or Medicare Advantage – pay the standardmonthly premium. However, Medicare enrollees who are eligible for Medicare Savings Programs, which are based on lower income levels, qualify for premium-free Medicare Part B. On the other hand, Medicare beneficiaries who have higher income levels pay a higher monthly premium.
Medicare Part B high-income premium
If your modified adjusted gross income (MAGI) exceeds a certain threshold, your Part B monthly premium may be higher than the standard premium, and you should expect to see a slight increase beginning on January 1, 2024. For instance, beneficiaries in 2024 who have filed taxes with a modified adjusted gross income greater than $103,000 up to $129,000 for an individual (or greater than $206,000 up to $258,000 filed jointly) will have a premium of $244.60.
Medicare Part B deductible
Every year, Medicare sets a deductible amount that all Original Medicare Part B enrollees must meet before Medicare begins paying its share of the cost for covered medical services and supplies.
In 2023, the annual Part B deductible was $226. On January 1, 2024, this amount will be $240, which is an increase of $14 from 2023.
If you’re enrolled in a Medicare Advantage (Part C) plan, your private insurance provider has the option to set an annual deductible that may be different from Original Medicare Part B. Your provider should inform you before the beginning of the year as to how much you’ll be paying in 2024 for your deductible.
If you aren’t sure about your Part C deductible or monthly premiums, you should contact your provider for details.