On October 12, 2023, CMS released the updated figures for 2024. Here’s what beneficiaries need to know.
MEDICARE PART A COST-SHARING INCREASED
99% of Medicare beneficiaries pay no Part A premium, due to them having paid FICA taxes for over 40 quarters. For those who have not met that requirement, they will see modest increases in their monthly premium payments. See the table below.
| 2024 | 2023 |
Enrollees over age 65, contributed to FICA for 40+ quarters | $0 | $0 |
Enrollees over age 65, contribute to FICA for 30-39 quarters | $278 | $278 |
Enrollees over age 65, contributed to FICA for fewer than 30 quarters | $505 | $506 |
Regardless of what they pay (or not!) in premium, all Part A beneficiaries are subject to cost-sharing for any inpatient care they receive – whether that care occurs in a hospital or a skilled nursing facility. Cost sharing for Part A is based on benefit periods. The table below details what beneficiaries can expect to pay for each type of service.
Medicare Part A Deductible and Coinsurance Amounts for Calendar Years 2023 and 2024
| 2023 | 2024 |
Inpatient hospital deductible | $1,600 | $1,632 |
Daily coinsurance for days 61-90 | $400 | $408 |
Daily coinsurance for lifetime reserve days | $800 | $816 |
Skilled nursing facility coinsurance for days 21-100 | $200 | $204 |
INCREASE IN PART B PREMIUM, DEDUCTIBLE; IRMAA BRACKETS ADJUSTED
The base premium for full Part B will increase from $164.90 per month to $174.70 per month. The change is a result of a projected increase in healthcare spending.
Since 2007, a beneficiary’s monthly part B premium has been dependent on income and tax filing status. Income-related monthly adjustment amounts impact about 8% of enrollees. Total premiums for a variety of income brackets and filing statuses are shown in the tables below. Note these brackets have shifted some, as a result of inflationary pressures.
FULL PART B COVERAGE
Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Income-Related Monthly Adjustment Amount | Total Monthly Premium Amount |
Less than or equal to $103,000 | Less than or equal to $206,000 | $0.00 | $174.70 |
Greater than $103,000 and less than or equal to $129,000 | Greater than $206,000 and less than or equal to $258,000 | $69.90 | $244.60 |
Greater than $129,000 and less than or equal to $161,000 | Greater than $258,000 and less than or equal to $322,000 | $174.70 | $349.40 |
Greater than $161,000 and less than or equal to $193,000 | Greater than $322,000 and less than or equal to $386,000 | $279.50 | $454.20 |
Greater than $193,000 and less than $500,000 | Greater than $386,000 and less than $750,000 | $384.30 | $559.00 |
Greater than or equal to $500,000 | Greater than or equal to $750,000 | $419.30 | $594.00 |
* A full listing can be found here!
PART D IRMAA BRACKETS HAVE ALSO CHANGED While Part D plan premiums are determined by private insurers, high-income earners may also be subject to an income-related monthly adjustment amount. This adjustment is deducted from an enrollee’s Social Security benefit. Figures for a variety of income brackets and tax filing statuses are displayed below.
Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Income-related monthly adjustment amount |
Less than or equal to $103,000 | Less than or equal to $206,000 | $0.00 |
Greater than $103,000 and less than or equal to $129,000 | Greater than $206,000 and less than or equal to $258,000 | $12.90 |
Greater than $129,000 and less than or equal to $161,000 | Greater than $258,000 and less than or equal to $322,000 | $33.30 |
Greater than $161,000 and less than or equal to $193,000 | Greater than $322,000 and less than or equal to $386,000 | $53.80 |
Greater than $193,000 and less than $500,000 | Greater than $386,000 and less than $750,000 | $74.20 |
Greater than or equal to $500,000 | Greater than or equal to $750,000 | $81.00 |
* A full listing can be found here!