In 2024, Medicare will see a few changes, although most of the program remains consistent. I will touch on the key changes to keep you informed about what to expect in the coming year. The primary focus will be on Medicare Part A and Part B, highlighting changes to premiums, deductibles, and income thresholds.
Medicare Part A referred to as Hospital Insurance. For individuals who have contributed at least 40 quarters (10 years) to the Medicare tax system, there is still no monthly premium for Part A. This will continue in 2024. However, certain circumstances may require people to buy into Part A.
The changes in the three gaps in Original Medicare Part A:
1. Deductible: Original Medicare Part A comes with a deductible that you must pay if you're hospitalized. In 2024, this deductible will increase to $1,632, a 2% increase from the previous year. This deductible covers your expenses for the first 60 days in the hospital.
2. Extended Hospital Stays: If you have a hospital stay longer than 60 continuous days, which is rare, you will incur daily co-pays. In 2024, these co-pays are set at $408 for months three and four and $816 for month five, whuich is an increase by 2%.
3. Skilled Nursing Facility: Part A covers stays in a Skilled Nursing Facility. For the first 20 days, there is no out-of-pocket expense. From days 21 to 100, you have a daily co-pay, which increased to $204 in 2024, which is an incease by 2%.
Medicare Part B, also known as "Medical Insurance" covers outpatient services, doctor visits, preventive services, and more. Here are the key changes in Part B for 2024:
1. Premium: The standard Part B premium for most beneficiaries in 2024 will be $174.70 per month, a slight increase from the previous year.
2. Deductible: The Part B deductible is an annual cost you must pay before Medicare starts covering your expenses. In 2024, this deductible will be $240, up from $226 in 2023.
3. Income-Related Monthly Adjustment Amount (IRMAA): If your income exceeds certain thresholds, you may be subject to additional premium charges. IRMAA is divided into five income levels, each with a corresponding premium adjustment. These thresholds are based on modified adjusted gross income (MAGI), calculated using your tax return.
- Single Filers:
- Below $103,000: Standard premium.
- Above $103,000: Pay an IRMAA.
- Married Couples:
- Below $206,000: Standard premium.
- Above $206,000: Pay an IRMAA.
With inflation at an all out high, I know how important it is to manage your budget. Hopefully this information was helpful. If you need help navigating the Medicare maze. We are here for you and medicare.gov is a very resourceful site. TheResa Culpepper Licensed Agent 951-801-4151