Medicare announced that Part B monthly premiums would rise to $174.70 in 2024 from $164.90 this year – an increase of $9.80, or 6 percent. The annual Part B deductible, which most people must pay before their Medicare coverage begins, will rise by $14, or 6.2 percent, to $240 from $226. Part B covers doctors, medical equipment, and outpatient expenses.
The Centers for Medicare & Medicaid Services (CMS) also released 2024 details for Part A of Medicare, which covers inpatient care in hospitals and skilled nursing facilities, hospice, inpatient rehabilitation, and some in-home care. The deductible for Part A will rise 2 percent to $1,632 in 2024 from $1,600 this year. Two-percent increases will also be applied to coinsurance programs for hospital and skilled nursing 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 will decline by $1 to $505 a month for those with fewer than 30 quarters of covered earnings; they will remain at $278 a month for people with between 30 and 40 quarters of covered earnings.
The CMS announcement also covered next year’s high-income Medicare surcharges, which apply additional premiums for Part B and Part D drug plans for about 8 percent of the highest-earning Medicare enrollees. Those rates also will increase about 6 percent from 2023 levels: