The Centers for Medicare and Medicaid Services (CMS) announced on Thursday that the standard Medicare Part B premium will increase by approximately $10 per month next year, reaching a total of $174.70.
In addition to the premium increase, CMS stated that the annual deductible for all Medicare Part B beneficiaries will also rise. In 2024, the deductible will be set at $240, marking a $14 increase from the previous year's amount of $226. It is important to note that most beneficiaries do not have to pay a monthly premium for Part A.
Hospital Deductible Adjustment
For those admitted to the hospital, there will also be an adjustment to the Part A inpatient hospital deductible. In 2024, patients will be required to pay a deductible of $1,632, compared to the previous year's amount of $1,600.
Social Security COLA Increase
This healthcare news coincides with the recent announcement made by the Social Security Administration regarding the cost-of-living adjustment (COLA) for 2024. The COLA has been determined to be 3.2%, equating to an average monthly increase of approximately $57 for retirement checks.
Impact on Social Security Recipients
Since Part B premiums are automatically deducted from most Social Security recipients' benefits, the majority of retirees will only see a net increase of around $47 per month after factoring in the rise in Part B costs.
It is worth mentioning that individuals with modified adjusted gross incomes exceeding $103,000, as well as couples with incomes surpassing $206,000, will be subject to higher costs for their Medicare Part B and Part D coverage. For more details on the income-related monthly adjustment amounts (IRMAA), you can find the relevant information here.