The Costs of Medicare in 2024.
PAGE HIGHLIGHTS.
Once you age into Medicare, you'll face a range of potential costs. Medicre Part A typically doesn't have a premium for most people, but you may have to pay deductibles and coinsurance for inpatient hospital stays. Medicare Part B comes with a monthly premium, as well as an annual deductible and coinsurance for outpatient services. Part D covers prescription drug costs, but also has a monthly premium and may have deductibles and coinsurance. In addition to these costs, there may be additional expenses that aren't covered by Medicare and we refer to these as 'non-medical' expenses such as dental, vision, and hearing care. It's important to consider your healthcare needs and budget for these potential costs.
Determine Medicare Part A Costs in 2024
If you or your spouse have worked a total of ten years or more, and Medicare taxes have been paid due to being employed, then Medicare Part A will be premium free. In the event that this is not the case then there could be a premium payment up to $505 per month for this coverage. Let's hope that you are part of the 99% who qualify for premium free Part A!
Medicare premiums updated every year by the Federal Government.
Determine Medicare Part B Costs in 2024
No matter if you worked ten years or not, most people that are entitled to Part B of Medicare will have to pay a monthly premium. Those that qualify for Medicaid or Extra Help from the state they reside in may have a reduced or fully subsidized Part B premium. In 2024 the standard Part B Medicare premium is $174.70 per month. Those who are considered high income earners will pay more for Part B and you can see those monthly income adjustment premiums (aka IRMAA) on our Learn About Medicare page.
How to Avoid Potential Lifetime Medicare Penalties
We know that enrolling in Medicare can be confusing, and failing to enroll on time can result in lifetime penalties. To avoid any potential penalties, it's important to understand Medicare enrollment periods and enroll on time. If you have a gap in your coverage or delay your enrollment, you may face penalties that will be added to your monthly premium for as long as you have Medicare coverage. In this guide, we'll walk you through the steps you need to take to avoid Medicare lifetime penalties and ensure that you have the coverage you need.
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Questions & Answers.
The standard Medicare Part B premium in 2024 is $174.70. If you and your spouse are considered high income earners, you'll pay more for the Part B premium. The maximum IRMAA for 2024 Part B of Medicare is $419.30 plus the base monthly payment of $174.70.
Social Security will withdraw the Medicare Part B premium automatically from your monthly benefit. If you have not activated your benefits at this point, then Social Security will send you a bill in the mail.
It is possible to receive a reduced Medicare Part B premium, but this all depends on your income level. There are programs available through each state that will determine if you are eligible. Some Medicare Advantage plans will offer a reduced Part B premium, but this should not be your primary objective when selecting a Medicare Advantage plan.
Medicare Part B premiums are based on your Modified Adjusted Gross Income. You can find this on Form 1040 line 11 from your tax return. You'll also need to include any Tax Exempt Interest which can be found on Form 1040 line 2a of your tax return. Social Security will adjust your Part B monthly premium based on the tax return from two years prior. If you disagree with the amount of your Part B premium you may request a IRMAA (Income Related Monthly Adjustment Amount) review.
Medicare can be confusing for most. We want to help you navigate the many options available to you, so please call us directly at (800) 405-4802 and chat with our insurance advisors for help.
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