The Centers for Medicare & Medicaid Services (CMS) have disclosed the 2024 expenses associated with Original Medicare. As the Annual Enrollment Period approaches, it’s crucial to be equipped with the latest cost details to make informed decisions.
During the Medicare Annual Enrollment Period (AEP), beneficiaries and potential enrollees have the chance to assess their coverage options. Understanding the anticipated costs, particularly those for Original Medicare, is essential for successful decision-making.
On October 12, 2023, CMS unveiled the 2024 costs of Original Medicare, aligning with the release of the 2024 Cost-of-Living Adjustment (COLA) and projected averages for private Medicare, Medicare Advantage, and Part D drug plans.
As expected, most Medicare insurance costs have risen slightly, reflecting the COLA for the upcoming year. Fortunately, many of these increases are not significant. Importantly, this information was provided before the start of AEP on October 15, ensuring beneficiaries have immediate access to all relevant details to guide their decisions this AEP and beyond.
All pertinent data can be accessed 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 stated otherwise.
Medicare Part A:
Contrary to the general trend, Medicare Part A premiums, which are mostly premium-free for about 99% of beneficiaries, will either decrease or remain steady in 2024. This is a positive deviation from recent premium growth patterns. The full premium will drop by a dollar from $506 in 2023 to $505 in 2024, while the partial premium remains at $278, the same as in 2023. Other out-of-pocket costs, such as deductibles and coinsurances, will experience mild increases.
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:
After experiencing a decrease last year, Medicare Part B costs are returning to their usual trajectory, albeit with smaller increases. The standard Part B premium will rise from $164.90 in 2023 to $174.70 in 2024, with the deductible increasing from $226 to $240. Additionally, the premium for specific beneficiaries receiving immunosuppressive drug coverage will increase from $97.10 in 2023 to $103 in 2024.
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% |
Naturally, the costs associated with Medicare Part B can vary among recipients. This is due to the Income-Related Monthly Adjustment Amount (IRMAA), which has the potential to alter your monthly Part B premium. Fortunately, the majority of Medicare beneficiaries won’t be affected by this adjustment. It typically begins for individuals earning over $103,000 annually, a figure that surpasses double the median income for Americans aged 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 |
Medicare Part C and D:
In 2024, most Part D plans are expected to observe a slight decrease in their average premiums. According to CMS estimates, there should be a 1.8 percent reduction from $56.49 in 2023 to $55.50 in 2024. Additionally, Medicare Part D plans will encounter increases in average deductibles, the Initial Coverage Limit, and the True Out-of-Pocket (TrOOP) limit. Specifically, the average deductible is projected to increase from $505 to $545 in 2024. The Initial Coverage Limit will rise from $4,660 in 2023 to $5,030 in 2024, while the TrOOP limit is set to increase from $7,400 in 2023 to $8,000 in 2024. Moreover, beneficiaries can anticipate some adjustments to coverage in Medicare Part D as a result of the Inflation Reduction Act of 2022.
Similar to Part B, Medicare Part D also has a premium Income-Related Monthly Adjustment Amount (IRMAA). This adjustment is paid on top of the specific plan’s premium, so we can only provide you with the adjustment.
2024 Part D IRMAA Breakdown
| 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 | |
The most encouraging aspect is that this information has been made available before the start of this year’s AEP. Making well-informed decisions about your coverage during AEP is crucial, whether you decide to stay with your current plan or switch to another. Having access to all the necessary information, including Original Medicare costs, boosts your confidence in your final decision. Moreover, it’s reassuring that the cost increases are not substantial.
