In a recent announcement, the Centers for Medicare and Medicaid Services (CMS) unveiled the figures for Medicare Part B premiums and deductibles in 2024, highlighting significant increases in costs for beneficiaries.
Medicare Part B premiums, a critical component of retirees’ healthcare expenses, are set to rise substantially
For most Social Security recipients enrolled in Medicare Part B premiums, monthly premiums are automatically deducted from benefit payments. The standard Medicare Part B premiums are available to individuals with a modified adjusted gross income (MAGI) of $103,000 or less and joint filers with a MAGI of $206,000 or less.
Starting in 2024, the standard monthly premium for Medicare Part B premiums will be $174.70, representing a $9.80 per month surge from the previous year. Additionally, the annual Part B deductible will escalate by $14 to $240. This increase is attributed primarily to anticipated heightened healthcare costs. Approximately 8% of Medicare Part B premiums beneficiaries will face premiums exceeding the standard rate.
The program employs five tiers of income-based adjustment levels for high-earners
Beneficiaries with MAGI between $103,000 and $129,000 (individuals) or $206,000 and $258,000 (joint filers) will incur an extra monthly charge of $69.90, resulting in a total monthly premium of $244.60. Higher tiers will face steeper increases, with premiums reaching as high as $594 for top earners.
Despite these hikes, Social Security recipients can anticipate a 3.2% cost-of-living adjustment (COLA) in 2024, providing some relief with an average monthly benefit increase of nearly $59 for retired workers. This news underscores the growing financial impact of Medicare Part B premiums on retirees’ budgets.
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