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On the 12th of October, the Centres for Medicare & Medicaid Services (CMS) announced the changes to Medicare Part B plans.
In July this year, experts predicted that the cost of living, inflation, and Medicare coverage expanding to provide for Leqembi (an early-stage Alzheimer’s treatment) would bring Medicare standard premiums to $179.80 monthly in 2024. While their prediction wasn’t completely wrong, the increase in Part B premiums won’t be as expensive as predicted.
Part B monthly premiums in 2024
The standard monthly premiums for 2024 will be $174.70, which is $9.80 higher than the 2023 fee of $164.90. The CMS attributed this increase mainly to projections that indicate increases in healthcare spending. However, since 2007, the actual Part B premium that one pays has depended on the individual’s modified adjusted gross income from two years ago. So, $174.70 will be the monthly premium only for beneficiaries who filed individual tax returns with a modified adjusted gross income of less than $103,000 in 2022 or beneficiaries who filed joint tax returns with a modified adjusted gross income of less than $206,000 in 2022.
At the highest threshold, beneficiaries who filed their modified adjusted gross income as greater than or equal to $500,000 on individual tax returns in 2022 or beneficiaries who filed their gross income as greater than or equal to $750,000 in 2022 will have to pay $594.0 as monthly premiums for Part B. See table below for a full breakdown of the income ranges and corresponding premiums.
Part B Premium Adjusted by IRMMA
| If Single orDivorced | If Married &Filed Joint | If Married &Filed Separate | 2024Part B Premium |
| $103,000 or less | $206,000 or less | $103,000 or less | $174.70 |
| $103,001–$129,000 | $206,001 – $258,000 | —- | $244.60 |
| $129,001–$161,000 | $258,001 – $322,000 | — | $349.40 |
| $161,001–$193,000 | $322,001 – $386,000 | — | $454.20 |
| $193,001–$499,999 | $386,001 – $749,999 | $103,001–$397,999 | $559.00 |
| $500,000 or above | $750,000 or above | $397,000 or above | $594.00 |
Since 2023, coverage has also been extended to individuals whose full Medicare coverage ended 36 months after a kidney transplant. If these individuals do not have other insurance coverage, they can continue Part B for Immunosuppressive drugs by paying a premium. The standard rate for this immunosuppressive drug will be $103 in 2024 for beneficiaries with a gross income of $103,000 on individual tax returns in 2022 or beneficiaries with a gross income of $206,000 on a joint tax return in 2022. At the highest income threshold (same as for ordinary premiums), the premium for immunosuppressive drug coverage will also be $515.10.
Premiums will slightly differ for married beneficiaries who lived with their spouse at any point during the year but file a separate tax return. Those with a gross income less than $103,00 will pay the standard $174.70 in monthly premiums, but anyone with a gross income greater than or equal to $397,000 will be greater than $594. For immunosuppressive drug coverage, gross income less than $103,00 will attract a premium of $103, while gross income greater than or equal to $397,000 will attract a premium of $515.10. See CMS fact sheet.
Part B Premium Adjusted by IRMMA for Immunosuppressive Drug Coverage Only
| If Single orDivorced | If Married &Filed Joint | If Married &Filed Separate | 2024Part B Premium |
| $103,000 or less | $206,000 or less | $103,000 or less | $103.0 |
| $103,001–$129,000 | $206,001 – $258,000 | —- | $171.70 |
| $129,001–$161,000 | $258,001 – $322,000 | — | $274.70 |
| $161,001–$193,000 | $322,001 – $386,000 | — | $377.70 |
| $193,001–$499,999 | $386,001 – $749,999 | $103,001–$397,999 | $480.70 |
| $500,000 or above | $750,000 or above | $397,000 or above | $515.10 |
Part B deductible in 2024
Annual deductibles for Part B will be $240 for all beneficiaries in 2024. This represents only an increase of $14 from 4226 in 2023. You pay this deductible once each year.
What is Medicare Part B?
Generally, people describe what is covered under Part B in two categories: preventive care and medically necessary outpatient services.
Under the category of medically necessary outpatient services, Part B covers any care or services received from a hospital that does not require patients to be admitted, provided that such services are crucial to diagnose or treat a medical condition. This includes various services, such as outpatient services, durable medical equipment like CPAP machines or wheelchairs, ambulance services, prescription drugs, and even mental health services, as long as you do not have to be admitted.
On the other hand, preventive services are “services that help you stay healthy, detect problems early, determine the most effective treatments, and prevent certain diseases.” This includes services such as mammograms, flu shots, or COVID-19 vaccines and tests.
Still, not every treatment or service will be covered by Medicare Part B. Find out more about what isn’t covered here.
To remain enrolled in Part B, you must pay monthly premiums and an annual deductible, after which the plan pays for 80% of the covered medically necessary services you receive. You will be responsible for the remaining 20% as coinsurance. However, you won’t have to pay anything for most preventive services.
