{"id":27200,"date":"2023-10-16T17:43:49","date_gmt":"2023-10-16T17:43:49","guid":{"rendered":"https:\/\/isafespend.com\/personal-finance\/retirement\/prepare-to-pay-more-medicare-part-b-premium-and-other-costs-are-going-up-in-2024\/"},"modified":"2023-10-16T17:43:49","modified_gmt":"2023-10-16T17:43:49","slug":"prepare-to-pay-more-medicare-part-b-premium-and-other-costs-are-going-up-in-2024","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=27200","title":{"rendered":"Prepare To Pay More: Medicare Part B Premium And Other Costs Are Going Up In 2024"},"content":{"rendered":"
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The federal government recently released two important changes that are relevant to seniors.<\/p>\n

2024 Part B premium Will Be $174.70<\/strong><\/h2>\n

The new 2024 monthly premium will be $9.80 more than the $164.90 in 2023, a 5.9% increase. In March, the Medicare trustees estimated that the monthly Part B premium would be $174.80. It looks as though their crystal ball was not broken; they missed the actual premium by $0.10.<\/p>\n

In a press release, CMS explains the increases in the premium and other Part B costs is mainly due to the projected increase in healthcare spending. That is not a surprise given the demographics. There were 100,000 more people on Medicare in June 2023 than in fall 2022 and healthcare costs increase as people age.<\/p>\n

There has been speculation that the premium could rise because of Leqembi, the new Part B drug approved for those diagnosed with mild cognitive impairment or mild Alzheimer\u2019s disease dementia. CMS included the impact of another Alzheimer\u2019s drug on the Part B premium in the 2021 and 2022 updates. However, there is no mention of that drug in this press release and I could not find any related updates online. But whatever the contributing factors, the premium will be almost $10 more.<\/p>\n

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Other Medicare Costs Are Rising<\/strong><\/h2>\n

Part B Deductible<\/h3>\n

The Part B deductible will jump $14 to $240.<\/p>\n

Part B IRMAA<\/h3>\n

Since 2007, higher-income beneficiaries have paid more for Part B (in addition to the monthly premium) because of IRMAA, short for the Income-Related Monthly Adjustment Amount. The Part B premium is the barometer for IRMAA. When the premium goes up or down, so do the amounts higher-income beneficiaries pay. For example, in 2023, the Part B premium dropped $5.20 and so did the monthly adjustments. Next year, with the increase in premiums, those subject to IRMAA will pay more.<\/p>\n

First, here are the new thresholds. If your income from two years ago (2022) crosses this line, you will pay more.<\/p>\n

\u2022 The 2024 annual income thresholds will be $103,000 for beneficiaries who file an individual return or married individuals filing a separate return, up from $97,000 this year.<\/p>\n

\u2022 For married individuals filing a joint return, the threshold will increase from $194,000 to $206,000.<\/p>\n

Then the monthly adjustments will range from $69.90-$419.30. This year the range was $65.90-$395.60.<\/p>\n

Part D IRMAA<\/h3>\n

Medicare Part D prescription drug coverage can come through either a stand-alone drug plan or a Medicare Advantage plan that includes prescription drug coverage. These beneficiaries will also pay more. The Part D IRMAA in 2024 will range from $12.90 to $81 a month, up $0.70 to $4.60. (Find complete IRMAA information via the CMS website here.)<\/p>\n

Part D Deductible<\/h3>\n

Those who have Medicare prescription drug coverage can face a deductible that will be $545 in 2024; it is $505 this year.<\/p>\n

Part A Premium and Cost Sharing<\/h3>\n

Most beneficiaries qualify for premium-free Part A hospital insurance. That\u2019s because either they or a spouse have 40 Social Security credits (10 years of paying taxes). Those who have not earned that many credits must pay a monthly premium if they want Part A.<\/p>\n

Unlike everything else, the premium for Part A will not increase.<\/p>\n