The Center for Medicare & Medicaid Services (CMS) has announced the premiums, deductibles, and coinsurance amounts for Medicare Parts A & B for 2024.
Let’s Begin with Part A
Medicare Part A covers inpatient hospital stays, skilled nursing facilities, hospice, inpatient rehabilitation, and some home healthcare services. The Medicare Part A inpatient hospital deductible beneficiaries pay if admitted to the hospital will be $1,632 in 2024, an increase of $32 from $1,600 in 2023. See the chart below for Cost Sharing in Medicare Part A.
Inpatient Hospital Deductible
Daily Hospital Coinsurance for the first 60 days
Daily Hospital Coinsurance for the 61st-90th day
Daily Hospital Coinsurance for Lifetime Reserve Days
Skilled Nursing Facility Coinsurance Days 0-20
Skilled Nursing Facility Coinsurance Days 21-100
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. Each year, the Medicare Part B premium, deductible, and coinsurance rates are determined according to the Social Security Act. The annual deductible for all Medicare Part B beneficiaries is $240 in 2024, an increase of $14.00 from the annual deductible of $226 in 2023. The standard monthly premium for Medicare Part B enrollees will be $174.70 for 2023, an increase of $9.80 from $164.90 in 2023. The Medicare Part B monthly premiums begin at $174.70 and are as high as $594.00. The reason there is a range of premiums is that since 2007, the beneficiary's Part B premium is based on their income. Medicare looks back two years ago at your tax return and looks at your modified adjusted gross income. If your income exceeds the standard earnings, they impose an Income-Related Monthly Adjustment Amount (IRMAA) charge. The chart below illustrates the various monthly Part B premium charges.
The income amounts shown are Modified Adjusted Gross Income from your tax forms for 2022.
Beneficiaries filing jointly
>$103,000 to $129,000
>$206,000 to $258,000
>129,000 to $161,000
>$258,000 to $322,000
>$161,000 to $193,000
>$322,000 to $386,000
>$193,000 to less than $500,000
>$386,000 and less than $750,000
Greater than or equal to $500,000
Greater than or equal to $750,000
If you are not sure where you stand or what to make of all these numbers, reach out to us, and an agent can help to simplify things.