Medicare costs 2024
Both agents and beneficiaries need to know what the Medicare costs 2024 are in order to accurately plan for the year ahead. The CMS announced the 2024 Medicare Part A and Part B premiums, deductibles and coinsurance amounts on Oct 12, 2023. As you will see, the premium for Part B is higher than last year and so is the deductible. Although the Part A premium has not increased.
Medicare costs 2024 – Part A
Almost all Medicare beneficiaries (over 99%) receive Medicare Part A premium-free. A very small number of Medicare beneficiaries (fewer then 1%) must pay their Part A premium. This is due to the fact that they have not worked for a minimum of 40 quarters in a job that qualifies as Medicare-covered employment.
Medicare enrollees who paid their Medicare taxes fewer than 30 quarters must pay $505 per month for their Part A premium in 2024. This amount is less than the 2023 premium of $506 per month. As you can see, this premium has gone down by $1. Medicare beneficiaries who have either paid Medicare taxes for at least 30 quarters or were married to someone who have worked for at least 30 quarters and paid their Medicare taxes will pay $278 for their Part A premium per month in 2024. This is the same cost as it was in 2023.
The deductible for an inpatient hospital stays (Medicare Part A in 2024, will be $1,632. In 2023 the inpatient hospital deductible was $1,600. This is an increase of $32 for 2024. The benefit period for each hospital stay ends 60 days after your release from care.
Part A Deductible & Coinsurance costs 2024
Inpatient deductible 2023, $1,600 – 2024, $1,632
Coinsurance (days 1-60) $0 per day each benefit period
Coinsurance (days 61-90) 2023, $400 – 2024 $408 per day
Coinsurance (60 lifetime reserve days) 2023, $800 – 2024 $816 per day
Skilled nursing facility coinsurance (3-day inpatient hospital stay required first)
Coinsurance (days 1-20) $0 per day
Coinsurance (days 21-100) 2023, $200 – 2024, $204
Medicare costs 2024 – Part B
Starting in January of 2024, the premium for Medicare Part B will be $174.70. This is up $9.80 from the 2023 cost of $164.90. The Medicare Part B deductible is also due to increase by $14 to $240 in 2024 from $226 in 2023. The total increase amounts to $14 over the cost in 2023.
Beneficiaries who have income above a certain level will pay an IRMAA in addition to the standard Part B monthly premium of $174.40. The chart below shows the income limits, the IRMAA amount as well as the Part B premium in each income bracket.
Part B Premium Rates with IRMAA
|Individual Tax Return||Joint Tax Return||IRMAA Amount||Part B Premium 2024|
|$103,000 or less||$206,000 or less||$0.00||$174.70|
|$103,001 to $129,000||$206,001 to $258,000||$69.90||$244.60|
|$129,001 to $161,000||$258,001 to $322,000||$174.70||$349.40|
|$161,001 to $193,000||$322,001 to $386,000||$279.50||$454.20|
|$193,001 to $499,000||$386,001 to $749,999||$384.30||$559.00|
|$500,000 or More||$750,000 or More||$419.30||$594.00|
It is important to remain up to date with any information that directly impacts your clients. Any agent who wants to provide his clients with the best service stays informed and educated so clients know they can trust your advice. This is why some agents get so many referrals and build a large book of business.