The 2024 Medicare Part B Premium and Deductible

The standard Medicare Part B premium for 2024 is $164.90 per month for most people. This is the amount you pay to Medicare each month to cover doctor visits, outpatient care, and other medical services that Part A does not cover. The monthly premium is deducted automatically from your Social Security check unless you chose a different payment method when you signed up.

In addition to the monthly premium, you also pay a Part B deductible of $240 for 2024. This means you must pay this amount out of your own pocket before Medicare starts to pay its share of your doctor and outpatient bills. Once you meet the deductible in a calendar year, Medicare typically covers 80 percent of approved services, and you pay the remaining 20 percent.

These amounts change each year. The 2024 premium represents an increase from 2023, when the standard premium was $164.90 (it remained the same). The deductible also changes annually based on healthcare cost trends. You will receive a notice in the mail before each year begins showing your new premium and deductible amounts.

Key Takeaways

  • The standard Part B premium for 2024 is $164.90 per month, deducted from your Social Security payment unless you arrange otherwise.
  • You must pay a $240 deductible before Medicare begins covering 80 percent of your doctor and outpatient care costs.
  • Higher-income beneficiaries pay more than the standard premium through Income-Related Monthly Adjustment Amounts (IRMAA), based on your tax return from two years prior.
  • You can avoid premium increases by enrolling in Part B during your initial enrollment period or within three months of becoming may be able to access.
  • Delaying Part B enrollment beyond your may be able to access window can result in a permanent 10 percent premium increase for each year you delayed.

Who Pays the Standard Premium and Who Pays More

Not everyone pays the standard $164.90 monthly premium. If your income is above a certain threshold, you pay an additional amount called an Income-Related Monthly Adjustment Amount (IRMAA). Medicare calculates this surcharge based on your modified adjusted gross income from your tax return from two years before the current year. For example, 2024 IRMAA amounts are based on your 2022 tax return.

The income thresholds for 2024 begin at $97,000 for single filers and $194,000 for married couples filing jointly. If your income exceeds these amounts, you pay the standard premium plus an additional monthly amount that can range from $66 to $560 depending on your income level. The higher your income, the higher your IRMAA surcharge.

If your income drops due to retirement, job loss, or other life changes, you can request that Medicare recalculate your IRMAA using your current year's income instead of the two-year-old tax return. You must file a form called the Medicare Income-Related Monthly Adjustment Amount Life-Changing Event with Social Security to request this adjustment.

When You Enroll Affects What You Pay Long-Term

The timing of your Part B enrollment matters significantly for your future costs. If you enroll during your Initial Enrollment Period (IEP) — which runs for seven months centered on your 65th birthday — you pay only the standard premium with no penalties.

If you delay enrolling in Part B after your IEP ends and you do not have other may have access to coverage, Medicare charges you a permanent 10 percent premium increase for each year you delayed. This penalty stays with you for as long as you have Part B, even if you move to a different state or change your circumstances. For example, if you delayed enrollment for three years, you would pay 30 percent more than the standard premium for the rest of your life.

The only exceptions to this penalty are if you had employer health insurance or certain other may have access to coverage when you became may be able to access for Medicare. If you did, you have a grace period to enroll without penalty, but you must enroll within eight months of losing that coverage.

What Part B Actually Covers at These Costs

Your Part B premium and deductible cover a range of outpatient services. These include doctor office visits, preventive care screenings (like mammograms and colonoscopies), lab tests, X-rays and imaging, ambulance services, and durable medical equipment like wheelchairs and oxygen supplies. Part B also covers mental health services, physical therapy, and occupational therapy when medically necessary.

After you meet your $240 deductible, Medicare pays 80 percent of the approved amount for most services, and you pay 20 percent. However, some preventive services are covered at 100 percent with no deductible or copay — these include annual wellness visits, flu shots, pneumonia vaccines, and colorectal cancer screenings.

Part B does not cover routine dental care, vision exams for glasses or contacts, hearing aids, or long-term care in a nursing home. It also does not cover prescription drugs — that coverage comes through Part D, which has its own separate premium and deductible.

How Part B Costs Compare to Other Coverage Options

Some people choose Medicare Advantage (Part C) instead of Original Medicare with Part B. Medicare Advantage plans are offered by private insurance companies and must cover everything Part A and Part B cover, but they often have lower or zero premiums. However, they typically have higher deductibles, copays, and coinsurance amounts when you use services. They also usually require you to use doctors and hospitals within their network.

If you have retiree health insurance from a former employer, that coverage may work alongside Medicare Part B. You would still pay the Part B premium, but your employer plan might cover some or all of the 20 percent coinsurance that Medicare does not pay. The cost of employer coverage varies widely depending on your former employer and your specific plan.

Some people with low income and limited resources may be covered by Medicaid in addition to Medicare. Medicaid can help pay your Part B premium and deductible, reducing your out-of-pocket costs significantly. Each state runs its own Medicaid program with different income limits, so you would need to contact your state Medicaid office to learn whether you might be covered.

Paying Your Part B Premium and Managing Changes

Most people have their Part B premium automatically deducted from their Social Security check 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.

If your income changes significantly — such as through retirement, the death of a spouse, or a major drop in earnings — you can contact Social Security to request that your IRMAA be recalculated. You will need to provide documentation of the life-changing event. This can lower your monthly premium if your income has decreased.

If you believe your premium amount is incorrect, you can call Medicare at 1-800-MEDICARE (1-800-633-4227) to ask for a review. Keep copies of any notices Medicare sends you, as these show your premium amount and explain any changes year to year.

Frequently Asked Questions

Can I delay Part B enrollment without a penalty?

You can delay without penalty only if you have employer health insurance or certain other may have access to coverage when you turn 65. You must enroll within eight months of losing that coverage. Otherwise, delaying past your Initial Enrollment Period results in a permanent 10 percent premium increase for each year you waited.

Why did my Part B premium increase from last year?

Part B premiums increase each year based on projected healthcare costs. Additionally, if your income increased, your IRMAA surcharge may have gone up. Medicare bases IRMAA on your tax return from two years prior, so a higher income in that year would result in a higher premium now. You can request a recalculation if your current income is lower.

Do I have to pay Part B if I am still working?

If you are still working and covered by your employer's health plan, you can delay enrolling in Part B without penalty as long as you enroll within eight months of retiring or losing that coverage. However, once you turn 65, you must enroll in Part A (hospital insurance) even if you are still working.

What happens if I cannot afford my Part B premium?

If your income is low, you may be covered by Medicaid, which can pay your Part B premium for you. Contact your state Medicaid office to learn about income limits in your state. You can also ask Medicare about premium payment plans or hardship waivers if you are experiencing financial difficulty.

Is the Part B deductible the same every year?

No, the deductible changes annually. For 2024 it is $240, but it may be higher or lower in future years based on healthcare cost trends. Medicare will notify you of any changes before the new year begins.