The Centers for Medicare & Medicaid Services has announced the new Medicare cost-sharing amounts for 2024.
With inflation rising, the percentage increases are higher than in past years. We discuss the numbers below and how they affect your premiums, deductibles, coinsurance, and out-of-pocket exposure.
These changes affect all insurance plans – both new and old. All Medicare plans must abide by any new cost-sharing rules no matter when they were purchased.
Medicare Premiums, Deductibles & Coinsurance 2020-2024
| Medicare Feature | 2020 Amount | 2021 Amount | 2022 Amount | 2023 Amount | 2024 Amount | Change From 2023 |
|---|---|---|---|---|---|---|
| Medicare Part B Premiums (For Most) | $144.60 | $148.50 | $170.10 | $164.90 | $174.70 | +$9.80 |
| Part A Deductible (Impatient Hospital) | $1,408 | $1,484 | $1,556 | $1,600 | $1,632 | +32 |
| Part B Deductible (Physician's Services) | $198 | $203 | $233 | $226 | $240 | +$14 |
| Hospital Coinsurance Days 61-90 | $352 | $371 | $389 | $400 | $408 | +$8 |
| Hospital Coinsurance Days 91-150 | $704 | $742 | $778 | $800 | $816 | +$16 |
| Skilled Nursing Facility Coinsurance | $176 | $185.50 | $194.50 | $200 | $204 | +$4 |
| High Deductible Plans F, G & J | $2,340 | $2,370 | $2,490 | 2,700 | 2,800 | +$100 |
Medicare Part B Premiums & IRMAA Surcharges
Medicare Part B premiums are increasing in 2023. Most will see their premiums decrease to $174.70 per month. This is a $9.80 increase from 2023.
It’s worth noting the Social Security cost-of-living adjustment is 3.2% for 2024. Your SS check will increase by that percentage on a monthly basis. This is much less than the amount for 2023.
Higher earners will still experience increases based on their income, however. Limits for individual and joint filers have been increased which may lessen the burden for some, however.
(By rule, those who fall under the “hold-harmless” provision must have their Part B premiums offset by increases in Social Security payments.)
The Income Related Monthly Adjustment Amount (IRMAA) requires individuals making more than $103,000 – and couples filing jointly making over $206,000 – to pay more for Medicare Part B coverage.
| Individual Filers | Joint Filers | Married - File Separately | Your 2024 Monthly Premiums |
|---|---|---|---|
| AGI Less Than Or Equal To $103,000 | AGI Less Than Or Equal To $206,000 | AGI Less Than Or Equal To $103,000 | $174.70 |
| AGI Greater Than $103,000 And Less Than Or Equal To $129,000 | AGI Greater Than $206,000 And Less Than or Equal To $258,000 | N/A | $244.60 |
| AGI Greater Than $129,000 And Less Than Or Equal To $161,000 | AGI Greater Than $258,000 And Less Than or Equal To $322,000 | N/A | $349.40 |
| AGI Greater Than $161,000 And Less Than Or Equal To $193,000 | AGI Greater Than $322,000 And Less Than or Equal To $386,000 | N/A | $454.20 |
| AGI Greater Than $193,000 And Less Than Or Equal To $500,000 | AGI Greater Than $386,000 And Less Than or Equal To $750,000 | AGI Greater Than $103,000 And Less Than or Equal To $397,000 | $559.00 |
| AGI Greater Than $500,000 | AGI Greater Than $750,000 | AGI Greater Than $397,000 | $594.00 |
IRMAA premiums are determined by your income from 2 years ago. There are five tiers to the IRMAA payment schedule as seen above. What you made in 2022 determines your 2024 Part B premiums. There is an IRMAA surcharge on Medicare Part D drug premiums as well. You can appeal your IRMAA surcharge if your income has decreased in the last two years, however.
Medicare Part A & Part B Deductible Amounts
The Part B deductible is important for many consumers. The Medicare Part B deductible for 2024 is $240 – a $14 increase from 2023. This amount affects owners of Medicare supplements that do not cover the Part B deductible.
Medigap Plans G & N are two popular policies that do not cover the Part B Deductible. We see several enrollments in these two as their monthly rates tend to be more stable. Plans C & F do cover the Part B deductible, but are only available for purchase if your Medicare Part B began before January 1, 2020.
The Part A deductible (Inpatient Hospital Care) is increasing to $1,632 – an increase of $32. Most Medicare supplements cover the Part A deductible. This amount is slightly more than last year. The most popular policies like Plans F, G, and N all cover this gap.
One reason Medicare Supplement premiums increase is due to increases in cost-sharing. Another reason is the higher utilization of healthcare services. It is rare for Medigap plans to lower their premiums year over year for those already enrolled. In most cases, consumers can expect a rate increase each year on or near their policy anniversary.
What is the 2024 High Deductible Plan F & G Amount?
Some consumers prefer High Deductible Medicare supplement plans due to their low premiums. Consumers also like the known out-of-pocket exposure. The deductible for all High Deductible policies will increase to $2,800 in 2024. That’s a $100 increase from 2023. This deductible has increased by approximately $450 over the last four years.
Plans F & G are the only policies with a high deductible option. Plan F is only available to those who were Medicare-eligible before 2020.
The only plan available for those who are new to Medicare in 2020 and beyond is High Deductible Plan G. In many states, HD Plan G will offer the lowest monthly premiums of any Medicare supplement for sale.
Medicare Supplement Plans K and L Changes
Plans K and L were introduced in 2010 as part of the Medicare Modernization Act. We don’t see a lot of interest in these two policies. They have larger out-of-pocket exposure, but higher premiums than similar (or even more comprehensive) Supplements.
In terms of cost-sharing, they somewhat resemble Medicare Advantage coverage. Plans K and L do not have network restrictions, however. You can see any doctor or hospital accepting Supplements – which most do.
The increases with these two plans are in line with what we’ve seen in prior years. The out-of-pocket will be $7,060 for Plan K and $3,530 for Plan L. These are similar percentage increases from the last few years. When you compare benefits and premiums with Plan K & L, it’s wise to consider Plan N… or a High Deductible Supplement. Oftentimes, there is the most value in those Supplements or a few others.
Contact Us For Assistance
As illustrated above, there are some significant changes to Medicare premiums and cost-sharing amounts. Those who are on a fixed income may need to reevaluate their choices for supplemental insurance. It might be necessary to consider a low-cost Medicare Advantage plan or Medigap policy with higher out-of-pocket exposure.
We are a full-service, independent insurance agency that offers Medicare insurance all across the country. We license directly with all of our carriers. We are a great resource for education, comparisons, and direct enrollment.
We offer Medicare supplements, Medicare Advantage, and Part D prescription drug coverage. Contact us today to compare your most affordable options.