Medicare Costs Will Increase in 2024 – Here’s What to Know

On Thursday, the Centers for Medicare and Medicaid Services (CMS) announced that Medicare Part B monthly premiums are slated to increase by 6% in 2024. 

In 2024, Part B beneficiaries will have to pay a monthly premium of $174.70, a $9.80 jump from  $164.90 in 2023. 

CMS also increased the annual deductible — the amount you have to pay before your insurance coverage kicks in — for the plan next year. Enrollees will have to pay  $240 in 2024, a $14 hike from $226 in 2023. 

Medicare Part B, dubbed medical insurance, is an optional segment of the federal health insurance program that people 65 or older can elect. (The program is also available to select younger individuals who meet certain disability requirements, like permanent kidney damage or transplant recipients.)   

This insurance plan covers several medically necessary services, such as doctor visits, certain home health services, access to some types of medical equipment, preventive services like lab tests, screenings and other health services not covered by Medicare Part A. 

Medicare Part A, also known as hospital insurance, covers hospital care, nursing services, hospice and surgery. Like Part B, Medicare Part A is also an optional medical insurance coverage. However, most people don’t pay a monthly premium for Part A. 

Currently, about 60 million Americans are enrolled in either Part A or Part B or both, according to a KFF report. 

“The increase in the 2024 Part B standard premium and deductible is mainly due to projected increases in health care spending,” a statement from the CMS said. 

The uptick in premiums comes after CMS reduced the monthly premiums for 2023 for the first time in 10 years. Typically, CMS sets the Medicare Part A and B rates based on the Social Security Act — the cash pensions older Americans receive based on their retirement status or financial need. Medicare Part B coverage monthly premiums are also based on a person’s income. 

For example, in 2024, people who will file individual income taxes for a gross income of more than $103,000 or joint taxes for more than $206,000 will have to pay a higher monthly premium next year. 

What to know if you’re new to Medicare

When older Americans apply for Social Security benefits, the same application is used for Medicare Part A and Medicare Part B, so individuals will be automatically enrolled. Because there’s a premium associated with Part B, individuals can choose to opt out. (If you won’t receive Social Security benefits when turning 65, you’ll need to contact Social Security in order to enroll in Medicare.) 

This important decision needs to be made during the initial enrollment period — three months before your birthday or within three months after you turn 65. 

If you want to keep both of the coverage plans, just sign the Medicare card the government mails and present it at your next medical appointment. But if you want to opt out of one or both, call the Social Security office. 

If you decline coverage, but later decide to opt in, you will have to wait for the general enrollment period between January 1 and March 31 of the upcoming year. 

If you are unclear or not sure whether you should delay, deny or accept Medicare Part A or Part B coverage, speak to your employer or union benefits representative for clarification (if you have not retired), or contact the Social Security office.