Medicare Part B Premium to Increase in 2024

Medicare’s Part B standard monthly premium will increase to $174.70 in 2024, a $9.80 increase from this year, the Centers for Medicare & Medicaid Services (CMS) announced Oct. 12. 

The premium increase comes on the heels of a decrease in 2023 in the Part B monthly charge. Medicare Part B covers doctor visits, diagnostic tests and other outpatient services. The annual Part B deductible will also rise, to $240 in 2024 from $226 this year. CMS attributed the higher premiums and deductibles mainly to increases in health care spending.

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The announcement of the 2024 Part B premium came the same day the Social Security Administration (SSA) revealed that the cost-of-living-adjustment (COLA) for benefits in 2024 will be 3.2 percent. The average monthly Social Security retirement benefit will rise by $59, from approximately $1,848 to $1,907, according to the SSA. Medicare beneficiaries who are also receiving Social Security retirement benefits see their Part B premiums deducted directly from those monthly payments.

Premiums for high-earners also rising

CMS also announced the premiums for those Medicare enrollees who pay higher monthly charges because of their income. Those charges will also increase. 

Part B beneficiaries with annual individual incomes greater than $103,000 will pay more than the standard premium — how much more will depend on income. For example, someone filing an individual tax return whose income is between $103,000 and $129,000 will pay $244.60 a month for Part B instead of the standard $174.70. CMS says about 8 percent of Medicare beneficiaries pay more than the standard monthly premium.

Most Medicare enrollees must pay the Part B premium whether they have original Medicare or a private Medicare Advantage plan. Some Advantage plans offer a “giveback” benefit where the insurer covers part or all of a member’s Part B monthly premium. Consumers can find those plans on the Medicare plan finder. Deductibles in Medicare Advantage vary by plan.​

Part A costs increasing

While most Medicare enrollees do not pay a monthly premium for Part A, which covers inpatient hospital, skilled nursing facility, hospice and some home health care services, there is a deductible charged for each hospital stay.

For 2024, the Part A deductible will be $1,632 per stay, an increase of $32 from this year. For those people who have not worked long enough to qualify for premium-free Part A, the monthly premium is little changed. The full Part A premium will be $505 a month in 2024, a $1 decrease. 

Whether a beneficiary has to pay the full Part A premium depends on their spouse’s work history, if they have one. Beneficiaries with Medicare Advantage plans should check with their plan for hospital charges.