Here's What Medicare Costs in 2024

The Centers for Medicare & Medicaid Services (CMS) have released the 2024 costs for Original Medicare.

Every year, there's a special time called the Medicare Annual Enrollment Period (AEP). During this time, people who use Medicare or want to join can check out different coverage choices. To make smart decisions, it's good to know about the costs, especially the money you might have to pay with Original Medicare.

On October 12, 2023, the Centers for Medicare & Medicaid Services (CMS) shared the costs of Original Medicare for 2024. They also told us about the Cost-of-Living Adjustment (COLA) for 2024 and the expected averages for private Medicare, Medicare Advantage, and Part D drug plans.

As we expected, some of the costs of Medicare will go up next year because of the COLA. The good news is that these increases don't seem to be too big. Plus, they told us about these costs before the AEP starts on October 15. That means you have all the information you need right away. This is great for people using Medicare because they can make wise choices during AEP and for the coming year. Let's take a closer look!

Medicare Part A

Medicare costs went up a bit, but there's good news about Part A premiums. Most people don't pay for Part A benefits, and if you or your spouse paid Medicare tax for 10 years, you get it for free. Even if you paid some tax but not the full 10 years, the premium is staying the same or getting a bit lower in 2024.

For other costs, like hospital stays, they increased a bit. The deductible for hospitals went up, and so did the coinsurance for certain days. If you have to pay for skilled nursing, that cost went up a little too. Overall, some things cost a bit more, but Part A premiums are either staying the same or going down a bit.

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Medicare Part A Cost for 2024

Medicare Part A New Cost

Medicare Part B

Last year, the out-of-pocket costs for Medicare Part B went down, which was a positive change. However, in 2024, the costs are going back up, although not by as much as in previous years. The good news is that the increases are smaller than before.

Here are the details for 2024:

- The Medicare Part B premium is going up from $164.90 in 2023 to $174.70 in 2024, an increase of $9.80.

- The Part B deductible is also increasing from $226 in 2023 to $240 in 2024.

- For specific Medicare beneficiaries with new coverage for immunosuppressive drugs, the premium will be $103 in 2024, up from $97.10 in 2023. This coverage, which started last year, will continue.

So, while there's an increase in costs for Medicare Part B in 2024, the good news is that it's not as much as in previous years.

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Medicare Part B Cost for 2024

Medicare Part B Cost Increase Image

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IRMAA 2024 (Income-Related Monthly Adjustment Amount )

Not everyone with Medicare Part B pays the same amount. There's something called the Income-Related Monthly Adjustment Amount (IRMAA), which can change your monthly Part B premium. Fortunately, most people on Medicare won't have to deal with this adjustment. It kicks in for single individuals making over $103,000 a year, which is more than double the average income for Americans aged 65 and older in 2023. So, for most folks on Medicare, this adjustment won't affect them.

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Income-Related Monthly Adjustment Amount 2024

Medicare IRMMA 2024 Image