A Look at 2024 Medicare Premiums

October 13, 2023

Monthly Medicare premiums for physician and outpatient care will rise about 6 percent for 2024, CMS announced this week.

Here’s what you need to know:

• Part B:  The standard monthly premium for Medicare Part B enrollees will be $174.70 for 2024, an increase of $9.80 from 2023.
  • The annual deductible for all Medicare Part B beneficiaries will be $240 in 2024, a $14 increase.
  • Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment, and certain medical and health services not covered by Part A.
  • About 8 percent of beneficiaries will have higher premiums due to their income.
• Background:  Medicare premiums have not followed a consistent trend. Last year, Part B premiums dropped 3 percent due to limited coverage for the Alzheimer’s disease drug Aduhelm.
• Inpatient care:  Medicare Part A covers inpatient hospitals, skilled nursing facilities, hospice, inpatient rehabilitation, and some home health care services.
  • About 99 percent of Medicare beneficiaries do not have a Part A premium since they had at least 40 quarters of Medicare-covered employment.
  • The Part A inpatient hospital deductible that beneficiaries pay if admitted to the hospital will be $1,632 in 2024, a $32 increase from 2023.
• Quotable:  “The increase in the 2024 Part B standard premium and deductible is mainly due to projected increases in health care spending and, to a lesser degree, the remedy for the 340B-acquired drug payment policy for the 2018–2022 period under the Hospital Outpatient Prospective Payment System,” CMS said in a fact sheet.

Last month, CMS announced average Medicare Advantage premiums would decline $2.34 to $27.94 in Pennsylvania. About half of all people with Medicare have supplemental coverage, the agency said.

The announcement comes ahead of open enrollment, which begins Sunday. For additional information about Medicare and Medicare Advantage, contact 1-800-MEDICARE or contact your State Health Insurance Assistance Programs for help comparing plans and costs this year.