Here's What Medicare Costs in 2024

Each year, the Medicare Annual Enrollment Period (AEP) gives beneficiaries and prospective enrollees the opportunity to explore their coverage options. To do this successfully, it helps to know what costs you can expect, including the out-of-pocket costs set for Original Medicare.

On October 12, 2023, the Centers for Medicare & Medicaid Services (CMS) announced the costs of Original Medicare for 2024. This was preceded by the release of the 2024 Cost-of-Living Adjustment (COLA) and the expected averages for the private Medicare, Medicare Advantage, and Part D drug plans.

As expected, many of the costs of Medicare experienced an increase based on the COLA for next year. Thankfully, many of these increases appear to not be substantial. As an added bonus, they have been released prior to the start of AEP, which begins October 15, so that you have all the information immediately. This gives Medicare beneficiaries a plethora of information to make informed decisions this AEP and next year. Let’s break it down!

All facts and figures can be found in the October 12, 2023, CMS press release “2024 Medicare Parts A & B Premiums and Deductibles,” or our article on the 2024 Part C and D average costs unless specifically linked elsewhere.

Medicare Part A

As expected, there was a slight increase in general costs across the board for Original Medicare. The one exception to this is the Medicare Part A premiums. While roughly 99 percent of all Medicare beneficiaries receive Part A benefits premium-free, those who don’t will be in for a nice surprise. You’re eligible to receive Part A benefits premium-free if you or your spouse paid 40 quarters (10 years-worth) of the Medicare tax, which is taken directly from your paycheck. If you paid more than 30 quarters, but less than 40, you’ll owe the partial premium. Paying anything less, you’ll owe the full premium. If you do have a Medicare Part A premium, both the partial premium and full premium will either be decreasing or remaining the same in 2024. This bucks the recent trend of premium growth over the last few years. The full premium will fall a dollar from $506 in 2023 to $505 in 2024. The 2024 partial premium will be $278, the same cost as in 2023.

The other out-of-pocket costs are seeing mild increases. The inpatient hospital deductible will go from $1,600 in 2023 to $1,632 in 2024. The hospital coinsurances will grow from $400 in 2023 to $408 in 2024 for Days 61 to 90 and $800 in 2023 to $816 in 2024 for Lifetime Reserve Days. The skilled nursing facility coinsurance is rising from $200 to $204 in 2024.

2024 Part A Cost Breakdown

Type of Cost	2023	2024	% Growth
Full Part A Premium	$506	$505	-0.198%
Partial Part A Premium	$278	$278	0.0%
Inpatient Hospital Deductible	$1,600	$1,632	2.0%
Daily Coinsurance for Days 61 to 90	$400	$408	2.0%
Daily Coinsurance for Lifetime Reserve Days	$800	$816	2.0%
Skilled Nursing Facility Coinsurance	$200	$204	2.0%

Medicare Part B

Last year, Medicare Part B saw out-of-pocket costs drop for the first time in years. In 2024, it’s a return to normal, with prices increasing after the historic decrease. The increases aren’t as large as they have been in previous years, which will come as welcome news to any enrolled in the program. With that in mind, we can confirm the base levels of Part B’s out-of-pocket costs for 2024. The Medicare Part B premium will move from $164.90 in 2023 to $174.70 in 2024, an increase of $9.80. The Part B deductible will also be growing, from $226 in 2023 to $240 in 2024. The new immunosuppressive drug coverage for specific Medicare beneficiaries that began last year will continue in 2024, with the premium increasing $5.90 to $103 from 2023’s $97.10.

2024 Part B Cost Breakdown

Type of Cost	2023	2024	% Growth
Standard Part B Premium	$164.90	$174.70	5.94%
Part B Deductible	$226	$240	6.19%
Immunosuppressive Drug Premium	$97.10	$103	6.08%

Of course, not everyone who receives Medicare Part B will experience the same costs. Medicare Part B has an Income-Related Monthly Adjustment Amount (IRMAA), which can change your monthly Part B premium. Luckily, most people on Medicare will not experience this adjustment, as the starting adjustment for a single person making over $103,000 a year, which is more than double the median income for Americans 65 and older in 2023.

2024 Part B IRMAA Breakdown

File Individual Tax Return	File Joint Tax Return	Monthly Adjustment	2024 Part B Monthly Premium
$103,000 or Less	$206,000 or Less	$0.00	$174.40
$103,001 to $129,000	$206,001 to $258,000	$69.90	$244.60
$129,001 to $161,000	$258,001 to $322,000	$174.70	$349.40
$161,001 to $193,000	$322,001 to $386,000	$279.50	$454.20
$193,001 to $499,999	$386,001 to $749,999	$384.30	$559.00
$500,000 or More	$750,000 or More	$419.30	$594.00

File Individual Tax Return	File Joint Tax Return	Monthly Adjustment	2024 Immunosuppresive Drug Premium
$103,000 or Less	$206,000 or Less	$0.00	$103.00
$103,001 to $129,000	$206,001 to $258,000	$68.70	$171.70
$129,001 to $161,000	$258,001 to $322,000	$171.70	$274.70
$161,001 to $193,000	$322,001 to $386,000	$274.70	$377.70
$193,001 to $499,999	$386,001 to $749,999	$377.70	$480.70
$500,000 or More	$750,000 or More	$412.10	$515.10

File Separate Tax Return from Spouse	Monthly Adjustment	2024 Part B Monthly Premium
$103,000 or Less	$0.00	$174.70
$103,001 to $396,999	$384.30	$559.00
$397,000 or More	$419.30	$594.00

File Separate Tax Return from Spouse	Monthly Adjustment	2024 Immunosuppressive Drug Premium
$103,000 or Less	$0.00	$103.00
$103,001 to $396,999	$377.70	$480.70
$397,000 or More	$412.10	$515.10

What About Medicare Part C and D?

In 2024, most Part D should see a slight decrease in their premiums on average. CMS estimates that there will be a 1.8 percent drop from $56.49 in 2023 to $55.50 in 2024. Medicare Part D plans will also experience a rise in average deductibles, the Initial Coverage Limit, and True Out-of-Pocket (TrOOP) limit. In 2024, the average deductible will rise from $505 to $545. The Initial Coverage Limit will increase from $4,660 in 2023 to $5,030 in 2024. The TrOOP limit is increasing from $7,400 in 2023 to 2024’s $8,000. Finally, beneficiaries will see some changes to coverage in Medicare Part D through the Inflation Reduction Act of 2022.

Medicare Part D also has a premium IRMAA similar to Part B. This adjustment is paid on top of the specific plan’s premium, so we can only give you the adjustment.

File Individual Tax Return	File Joint Tax Return	Monthly Adjustment
$103,000 or Less	$206,000 or Less	$0.00
$103,001 to $129,000	$206,001 to $258,000	$12.90
$129,001 to $161,000	$258,001 to $322,000	$33.30
$161,001 to $193,000	$322,001 to $386,000	$53.80
$193,001 to $499,999	$386,001 to $749,999	$74.20
$500,000 or More	$750,000 or More	$81.00

File Separate Tax Return from Spouse	Monthly Adjustment
$103,000 or Less	$0.00
$103,001 to $396,999	$74.20
$397,000 or More	$81.00

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The best news of all is that this information has been released prior to the kickoff of this year’s AEP. The best thing you can during AEP is make an informed decision about your coverage, whether you’re sticking with your current plan or switching to another. Having all the information you could need, Original Medicare costs included, only helps you to be confident in what you ultimately end up with. It certainly doesn’t hurt that the cost increases aren’t massive.