The standard Medicare Part B premium for 2024

The monthly premium for Medicare Part B in 2024 is $174.70 for most people. This amount changes each year — it rose from $164.90 in 2023. The premium covers doctor visits, outpatient care, lab work, and other services that Part A (hospital insurance) does not.

However, your actual monthly cost may be higher or lower than the standard rate. Income affects what you pay, and so does when you first enrolled. If you delayed signing up for Part B without a valid reason, you may owe a permanent penalty on top of the base premium.

Most people pay their Part B premium through an automatic deduction from their Social Security check each month. If you do not receive Social Security, Medicare bills you directly.

Key Takeaways

  • The standard Part B premium for 2024 is $174.70 per month, but your actual cost depends on your income and enrollment history.
  • If your modified adjusted gross income exceeds certain thresholds, you pay a higher premium called an Income-Related Monthly Adjustment Amount (IRMAA).
  • Delaying Part B enrollment without a valid reason triggers a permanent 10 percent penalty for each year you waited.
  • Part B also includes a yearly deductible ($240 in 2024) and coinsurance costs that are separate from your monthly premium.
  • Your premium is usually deducted automatically from your Social Security payment each month.

How income affects your Part B cost

Medicare uses a system called IRMAA (Income-Related Monthly Adjustment Amount) to set premiums based on your income. If your modified adjusted gross income is above a certain level, you pay more than the standard premium. The income thresholds change each year.

For 2024, if you are single and your income exceeds $97,000, your Part B premium increases. For married couples filing jointly, the threshold is $194,000. The higher your income above these levels, the more you pay — in some cases, significantly more. Someone with a very high income may pay three or four times the standard premium.

Medicare bases IRMAA on your tax return from two years prior. So your 2024 premium is based on your 2022 income. If your income dropped in 2023 or 2024 — because you retired, had a major life change, or lost income — you can request that Medicare recalculate your premium using current-year figures.

Late enrollment penalties and when they explore

If you did not sign up for Part B when you first became may be able to access at age 65, and you did not have a valid reason to delay, Medicare adds a permanent 10 percent penalty to your premium for each full year you waited. This penalty stays with you for life, even after you finally enroll.

Valid reasons to delay without penalty include having employer coverage through a current job, or being covered under a spouse's employer plan. If you had either of these, you have a grace period after that coverage ends to sign up for Part B without penalty. You must enroll within eight months of losing the employer coverage.

If you are unsure whether your delay was penalized, contact Social Security or Medicare directly. They can tell you whether a penalty applies to your account and what your premium should be.

Costs beyond the monthly premium

The monthly premium is only one piece of what you pay for Part B. You also owe an annual deductible before Medicare starts to pay its share. For 2024, the Part B deductible is $240. Once you meet this deductible in a calendar year, Medicare covers 80 percent of most services, and you pay 20 percent coinsurance.

Some services have different cost-sharing rules. For example, preventive services like annual wellness visits and cancer screenings are covered at no cost after you meet your deductible. Mental health visits and physical therapy have their own limits and rules.

If you have a Medigap (supplemental insurance) or Medicare Advantage plan, those plans may cover some or all of your deductible and coinsurance. That is why your total out-of-pocket cost for Part B depends on what other coverage you have.

How to pay your Part B premium

If you receive Social Security, your Part B premium is deducted automatically from your monthly benefit. You do not have to do anything — it happens on its own. Your Social Security statement shows the deduction each month.

If you do not receive Social Security, Medicare sends you a bill each month. You can pay by mail, phone, or online through the Medicare website. Set up automatic payments if you want to avoid missing a payment, which could result in a gap in your coverage.

If you cannot afford your Part B premium, you may be able to get help through Medicaid or other state programs. Contact your state Medicaid office or a local Area Agency on Aging to learn what programs exist in your area.

When Part B premiums change

Medicare announces the new Part B premium each October for the following year. The amount is set by Congress and is based on the expected cost of providing Part B services. Premiums have risen most years, though the size of the increase varies.

Your income-based IRMAA brackets also change each year. Even if the standard premium stays the same, your personal premium might change if your income crossed a new threshold or if you had a major life event that lowered your income.

You receive a notice in the mail each year showing your new premium amount and the date it takes effect. If the increase seems wrong, or if your income changed significantly, contact Medicare to discuss your options.

Frequently Asked Questions

Can I reduce my Part B premium if my income dropped?

Yes. If you had a major life event such as retirement, death of a spouse, or loss of income, you can ask Medicare to recalculate your IRMAA using your current income instead of the two-year-old tax return. You must request this within 60 days of the event. Contact Social Security or Medicare to file a request.

What happens if I do not pay my Part B premium?

If you miss payments, your coverage may be suspended. Once you pay what you owe, coverage resumes, but there may be a waiting period. If the gap is long, you could face a late enrollment penalty when you try to re-enroll. It is best to contact Medicare when ready if you cannot pay.

Does Part B premium include prescription drug coverage?

No. Part B covers doctor visits and outpatient services. Prescription drugs are covered under Part D, which is a separate plan with its own monthly premium. You choose a Part D plan during the annual enrollment period, and costs vary by plan and pharmacy.

Is there a way to avoid the income-based premium increase?

Not directly — if your income is above the threshold, you pay the higher amount. However, if your income dropped due to a life event, you can request a recalculation. Some people also explore strategies like charitable giving or other tax planning with an accountant, but Medicare's rules are based on your actual reported income.

Do I have to enroll in Part B, or can I skip it?

Part B is optional, but if you do not enroll when first may be able to access and do not have employer coverage, you will owe a permanent penalty when you do sign up. Most people enroll at 65 because the penalty makes it more expensive to wait. If you have active employer coverage, you can delay without penalty.