In 2023, we saw a decrease in Medicare premiums for the first time in years. Unfortunately, that trend is not going to stick around. Rates are on the rise again. This is what you can expect in 2024.
Definitions You Need to Know
Premium = The amount you pay every month to have your health plan, even if you don’t use any services that month
Deductible = The amount you pay each year before your benefits kick in
Coinsurance = A fixed percentage you pay for a service
Copayment = A fixed dollar amount you pay for a service
2024 Medicare Part A Costs
Medicare Part A covers inpatient hospital care, skilled nursing facility case (after a hospital stay), hospice care, and some home health services.
PART A PREMIUMS
Most people do not pay Part A premiums. This means they (or their spouse) worked 40 quarters (10 years) in Medicare-taxed employment. Someone who worked 30 to 39 quarters would pay $278 per month ($3,336 per year). Those who worked < 30 quarters, would pay $505 per month ($6,060 per year).
HOSPITAL CARE
You will pay a set amount for each hospital benefit period. Depending on your situation, a benefit period can cover one or more hospital stays. That is because a hospital benefit period starts when you are admitted to the hospital as an inpatient and lasts until you have been out of the hospital (or skilled nursing facility, if you went to one to recover after your hospital stay) for 60 days.
| Day of Inpatient Hospital Care | Your 2024 Costs |
| Inpatient hospital deductible for days 0-60 | $1,632 per hospital benefit period |
| Inpatient hospital copayment for days 61-90 | $408 per day |
| Inpatient hospital copayment for days 91+ | $816 per day |
SKILLED NURSING FACILITY CARE
Please know that Medicare won’t cover skilled nursing facility (SNF) stays unless they are associated with an inpatient hospital stay. In the event you need to go to a SNF after your hospital stay to help with your recovery, this is what you can expect to pay:
| Day of SNF Care | Your 2024 Costs |
| SNF days 0-20 | $0 |
| SNF days 21-100 | $204 per day |
| SNF days 100+ | You pay all costs out of pocket |
2024 Medicare Part B Costs
Most of your everyday healthcare needs will be covered by Medicare Part B. That includes, but is not limited to, office visits, emergency room visits, urgent care visits, observation care in the hospital, diagnostic tests, laboratory and imaging studies, preventive screening, physical therapy, occupational therapy, speech and language pathology therapy, diabetes supplies, medical equipment, and even some medications and vaccines.
PART B PREMIUMS
If you are on Medicare, whether you are on Original Medicare or a Medicare Advantage plan, you will pay Part B premiums. The only time you won’t is if you qualify for a Medicare Savings Program.
Part B Medicare premiums are not the same for everyone. Costs increase based on your income, and Medicare will assign you to one of six different income brackets based on your taxes from two years ago.
| Your 2022 Annual Income (How Taxes Were Filed) |
2024 Part B: Full Coverage |
2024 Part B: Partial Coverage* |
| Single: < $103K Married/Separate: <$103K Married/Joint: < $206K |
$174.70 per month $2,096.40 per year |
$103.00 per month $1,236.00 per year |
| Single: $103 – $129K Married/Joint: $206 – $258K |
$244.60 per month $2,935.20 per year |
$171.70 per month $2,060.40 per year |
| Single: $129 – $161K Married/Joint: $258 – $322K |
$349.40 per month $4,192.80 per year |
$274.70 per month $3,296.40 per year |
| Single: $161 – $193K Married/Joint: $322 – $386K |
$454.20 per month $5,450.40 per year |
$377.70 per month $4,532.40 per year |
| Single: $193 – $500K Married/Separate: $103 – $397K Married/Joint: $386 – $750K |
$559.00 per month $6,708.00 per year |
$480.70 per month $5,768.40 per year |
| Single: > $500K Married/Separate: > $397K Married/Joint: > $750K |
$594.00 per month $7,128.00 per year |
$515.10 per month $6,181.20 per year |
*This partial Part B coverage (referred to as Part B-ID) is limited to people who had a successful kidney transplant while they were on ESRD Medicare. After 36 months, they are no longer eligible for full ESRD Medicare but can sign up for these partial Part B benefits to help pay for their immunosuppressive drugs.
PART B COINSURANCE
After paying a $240 deductible for the year, your Part B benefits kick in. You will pay 20% for most services while Medicare pays the remaining 80%. Certain preventive screening services will be free to you — but only if your doctor accepts assignment.
2024 Medicare Part D Costs
Because Part D plans are run by private insurance companies, premiums and deductibles vary based on the plan you choose. However, please know that the federal government set a maximum deductible for Part D plans at $545 in 2024. Your deductible cannot be higher than this amount.
What you pay for each medication will also vary based on your plan. This could be a coinsurance or a copayment. If a drug is not on your plan’s formulary (and your plan refuses to cover it even after you make an appeal), you might have to pay the full cost yourself.
PART D IRMAA
Anyone who signs up for a Part D prescription drug plan will also pay what is known as the Income-Related Monthly Adjustment Amount (IRMAA). This is above and beyond the plan’s monthly premium. Like the Part B costs, what you pay is determined by your income, not on how many drugs your plan covers.
| Your 2022 Annual Income (How Taxes Were Filed) |
2024 Part D IRMAA Cost |
| Single: < $103K Married/Separate: <$103K Married/Joint: < $206K |
$0 per month |
| Single: $103 – $129K Married/Joint: $206 – $258K |
$12.90 per month $154.80 per year |
| Single: $129 – $161K Married/Joint: $258 – $322K |
$33.30 per month $399.60 per year |
| Single: $161 – $193K Married/Joint: $322 – $386K |
$53.80 per month $645.60 per year |
| Single: $193 – $500K Married/Separate: $103 – $397K Married/Joint: $386 – $750K |
$74.20 per month $890.40 per year |
| Single: > $500K Married/Separate: > $397K Married/Joint: > $750K |
$81.00 per month $972.00 per year |
References
2024 Medicare Parts A & B Premiums and Deductibles. (2023). Centers for Medicare & Medicaid Services. https://www.cms.gov/newsroom/fact-sheets/2024-medicare-parts-b-premiums-and-deductibles
Current Year: 2024
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