
Medicare Part B premiums are set to increase in 2024, rising to $174.70 per month, with an annual deductible of $240. This hike is primarily driven by anticipated growth in healthcare spending and adjustments related to the 340B-acquired drug payment policy. While most beneficiaries will pay the standard premium, 8 percent of those with incomes exceeding $103,000 will experience adjusted premiums. Additionally, Medicare Part A deductibles and coinsurance rates will see moderate increases. Medicare Part D monthly premiums are projected to reach $55.50 in 2024, affecting around 8 percent of beneficiaries with income-related adjustments.
The Centers for Medicare & Medicaid Services (CMS) have announced that Medicare Part B premiums will see an increase in 2024, reaching $174.70 per month. Additionally, the annual deductible will rise to $240. This adjustment is primarily attributed to the projected growth in healthcare spending.
Medicare Part B provides coverage for various healthcare services, including physician services, outpatient hospital services, select home health services, durable medical equipment, and specific medical services not covered by Medicare Part A.
CMS reports that the monthly premiums for Medicare Part B will surge by $9.80, equating to almost a 6 percent increase from 2023. This means the monthly premium will transition from $164.90 in 2023 to $174.70 in 2024. The annual deductible will also experience an uptick, increasing by $14, from $226 in 2023 to $240 in 2024.
The driving force behind these premium and deductible increments is the anticipated rise in healthcare expenditures, as well as adjustments related to the 340B-acquired drug payment policy for the period of 2018 to 2022, which is included in the Hospital Outpatient Prospective Payment System (OPPS).
Monthly Part B premiums are income-dependent, with higher-income individuals facing higher premiums. The majority of beneficiaries will pay $174.70 per month, with only 8 percent of those earning over $103,000 encountering premium adjustments ranging from $69.90 to $419.30 per month. For instance, individuals with incomes between $103,000 and $129,000 will see their monthly premium set at $244.60, while beneficiaries earning $500,000 or more will pay $594.00 per month.
In a unique scenario, beneficiaries whose Medicare coverage ends 36 months after a kidney transplant and have no alternative insurance option can continue Part B coverage for immunosuppressive drugs. For these individuals, the monthly premium will amount to $103.00 in 2024. However, depending on their income levels, premiums may vary between $171.70 and $515.10 per month.
Medicare Part A, which covers inpatient hospital services, skilled nursing facilities, hospice care, inpatient rehabilitation, and certain home healthcare services, is usually premium-free for most Medicare beneficiaries, as they typically have accumulated at least 40 quarters of Medicare-covered employment.
For beneficiaries admitted to the hospital, the Part A deductible will increase by $32 in 2024, reaching $1,632. This deductible caters to the first 60 days of Medicare-covered inpatient hospital care. After this period, beneficiaries must pay a coinsurance of $408 per day, up from $400 in 2023. In the case of skilled nursing facilities, the coinsurance for days 21 through 100 will rise from $200 per day in 2023 to $204 in 2024.
Beneficiaries aged 65 and older with fewer than 40 quarters of coverage, as well as people with disabilities, are required to pay a monthly Part A premium. In 2024, those with at least 30 quarters of coverage will continue to pay $278 per month, consistent with 2023 rates. However, individuals with less than 30 quarters of coverage and certain beneficiaries with disabilities will be subject to the full amount of $505 per month.
CMS has projected that Medicare Part D monthly premiums will be $55.50 in 2024, with around 8 percent of Part D beneficiaries facing income-related premium adjustments ranging from $12.90 to $81.00, as detailed in their recent fact sheet.