2024 Part B Premium up 6% to $174.70

Medicare’s Part B monthly premium is $174.70 in 2024 – an increase of $9.80, or 6 percent, from $164.90 in 2023. The annual Part B deductible, which most people must pay before their Medicare coverage begins, is $240, up by $14, or 6.2 percent, from $226 last year. Part B covers doctors, medical equipment, and outpatient expenses.

The deductible for Part A is $1,632 in 2024, up from $1,600 this year. Two-percent increases will also be applied to coinsurance programs for hospital and skilled nursing care. Part A of Medicare covers inpatient care in hospitals and skilled nursing facilities, hospice, inpatient rehabilitation, and some in-home care.

Part A is funded by Social Security payroll taxes. People who pay payroll taxes for at least 40 quarters during their working lives do not pay premiums for Part A. For the small percentage of those who do not qualify, Part A premiums dipped by $1 to $505 a month for those with fewer than 30 quarters of covered earnings; they are unchanged at $278 a month for people with between 30 and 40 quarters of covered earnings. The Part A deductible is for an episode of care, not for the entire year. An episode is usually defined as the time spent on claim plus an additional 60 days. It’s thus possible to have more than a single deductible in a calendar year.

High-income Medicare surcharges apply additional premiums for Part B and Part D drug plans for about 8 percent of the highest-earning Medicare enrollees. Those rates were raised about 6 percent from 2023 levels: