Medicare Premium costs are changing again in 2024, and the Centers for Medicare and Medicaid Services (CMS) just released the final numbers. Medicare Parts A and B are getting more expensive, and some who receive Medicare Part D will have to pay a cost adjustment, depending on their income. We’ll tell you how much below.
Each year, the Social Security Administration determines what the costs associated with the Medicare program will be. It then either raises or lowers premiums and deductibles using rules set out in the Social Security Act.
Here’s how much prices could change if you receive Medicare Parts A, B and D. In addition, if you receive Social Security, here’s how much the COLA increase will be next year.
Medicare Part A costs are going up in 2024
While roughly 99% of Medicare beneficiaries don’t have Part A premiums, according to the CMS, costs associated with part A are going up. Here’s how much the increase will be.
- Inpatient hospital deductible: $32 increase
- Daily hospital coinsurance for days 61 through 90: $8 increase
- Daily hospital coinsurance for lifetime reserve days: $16 increase
- Skilled nursing facility daily coinsurance (days 21 through 100): $4 increase
Medicare Part B is increasing in 2024
Due to a new Alzheimer’s treatment coming to the market (Leqembi, from pharmaceutical companies Eisai and Biogen), Medicare beneficiaries are expected to pick up the cost. Therefore, Medicare Part B prices will increase in 2024. The costs will go up from the current $164.90 to $174.70, an increase of nearly $10 per month.
Leqembi is a treatment for those in the early stages of Alzheimer’s disease.
How much less could Medicare Part D cost in 2024?
While you may not see a huge difference in the amount you’re paying for Medicare Part D, it still could be slightly lower. The average total monthly Part D premium is projected to decrease from $56.49 in 2023 to $55.50 in 2024, according to the CMS.
Here’s how it works according to the CMS: “The average total Part D premium is the sum of the average basic premium and the average supplemental premium for plans with enhanced coverage and is the most accurate current projection of what people will pay in 2024 for Part D premiums.”
It’s decreasing due to premium stabilization — 2022’s Inflation Reduction Act (IRA) redesigns Medicare Part D and provides a mechanism to limit premium increases for people enrolled in Medicare Part D — and an improved Basic Part D benefit — by capping annual out-of-pocket costs, limiting cost-sharing for covered insulin products and eliminating cost-sharing for recommended adult vaccines in 2024.
Although it’s decreasing, the CMS said there will be income-related adjustments to the monthly premium, ranging between $12.90 per month to $81 per month, depending on salary. Individuals with a salary of $103,000 or less won’t see any changes. Here’s what you can expect if your income exceeds that amount.
CMS Medicare Part D
|Individual gross income||Jointly filed gross income||Monthly adjustment amount|
|$103,000 or less||$206,000 or less||$0|
|$103,001 to $129,000||206,001 to 258,000||$12.90|
|129,001 to $161,000||$258,001 to $322,000||$33.30|
|$161,001 to $193,000||$322,001 to $386,000||$53.80|
|$193,001 to $500,000||$386,001 to $750,000||$74.20|
|$500,000 or more||$750,000 or more||$81|
What do Medicare Parts A, B, C and D cover?
Medicare Part A covers inpatient hospital, skilled nursing facility, hospice, inpatient rehabilitation and some home health care services.
Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered by Medicare Part A.
Medicare Part C, also known as a Medicare Advantage Plan, is another option for receiving benefits.
Medicare Part D helps cover prescription drug costs.
For more, check out whether you have to enroll in Medicare if you’re 65 and working. Also, here’s what you should know decades before you retire.