Medicare premiums and deductibles did increase in 2024, with changes that affect most people on the program

Yes, Medicare costs rose in 2024. The Part B premium — the monthly charge for doctor visits and outpatient care — increased to $174.70 per month for most people, up from $164.90 in 2023. The Part A deductible for hospital stays went up to $1,632 per benefit period, and the Part B deductible rose to $240 per year. These changes happen every January and are set by the Centers for Medicare & Medicaid Services (CMS) based on projected program costs.

The amount you actually pay depends on your income, which plan you chose, and whether you receive Extra Help or other cost-sharing programs. If you have a Medigap or Medicare Advantage plan, your out-of-pocket costs may look different from the standard Medicare figures, and your plan's costs may have changed separately.

Key Takeaways

  • Part B premiums increased to $174.70 monthly in 2024, and Part A and Part B deductibles both rose at the start of the year.
  • Income-related adjustments mean higher earners pay more than the standard premium amount, sometimes significantly more.
  • People receiving Extra Help or Medicaid may see little or no change in their out-of-pocket costs because those programs cover the increase.
  • Medicare Advantage and Medigap plans set their own costs separately, so your premium change depends on which plan you chose.
  • The 2024 cost of living adjustment (COLA) for Social Security was 3.2 percent, which may have offset some premium increases for beneficiaries.

How income affects what you pay in premiums

If your income is above a certain threshold, you pay a higher Part B premium than the standard amount. This is called an income-related monthly adjustment amount (IRMAA). For 2024, the income brackets and adjustment amounts changed from 2023, meaning some people moved into a higher bracket even if their income stayed the same.

CMS uses your tax return from two years prior to calculate IRMAA — so 2024 premiums are based on your 2022 income. If you had a major life change in 2023 or 2024 (such as retirement, a spouse's death, or a large one-time gain), you can request that CMS recalculate your premium using current income instead. This is called a life-changing event appeal, and you must file it within 60 days of the event.

The income thresholds and adjustment amounts vary by filing status (single, married filing jointly, married filing separately). If you are unsure whether your income triggered an adjustment, you can call Medicare at 1-800-MEDICARE to ask what premium you are being charged and why.

Part D prescription drug costs in 2024

Part D plans — which cover prescription drugs — set their own premiums, deductibles, and copayments each year. There is no single "Part D cost" across all plans; instead, each plan decides what it will charge. In 2024, some plans lowered their premiums while others raised them, and the coverage gap (the "donut hole") thresholds shifted.

If you are in a Part D plan, your plan should have sent you a notice in the fall of 2023 explaining any changes to your costs for 2024. If you did not receive one or cannot find it, you can log into Medicare.gov, call 1-800-MEDICARE, or contact your plan directly to see what your new costs are.

People receiving Extra Help with prescription drug costs may see no change in their out-of-pocket costs, because Extra Help covers the increase. If you think you might be may be able to access for Extra Help, you can learn about it through your local Social Security office or by calling 1-800-MEDICARE.

Medicare Advantage plan costs for 2024

Medicare Advantage (Part C) plans are offered by private insurance companies and include Part A, Part B, and usually Part D coverage in one plan. Each plan sets its own premium, deductible, and copayment structure, so costs vary widely. Some plans have zero premium, while others charge $100 or more per month.

If you are already in a Medicare Advantage plan, your plan should have notified you of any premium or cost changes for 2024. If you want to switch to a different plan or to Original Medicare, you have a window to do so during the Annual Enrollment Period, which runs from October 15 to December 7 each year. Changes take effect January 1 of the following year.

When comparing plans, look at the total cost you will pay out of pocket, not just the premium. A plan with a low or zero premium might have higher copayments for doctor visits or prescriptions. Medicare.gov has a plan comparison tool that shows estimated costs based on your current doctors and medications.

Medigap plan costs and rate increases

Medigap (supplemental insurance) plans are sold by private insurers and help cover costs that Original Medicare does not — such as copayments, coinsurance, and deductibles. Each insurance company sets its own Medigap premiums, and rates can increase year to year based on the company's claims experience and other factors.

Unlike Medicare Advantage, Medigap plans do not have an annual enrollment period tied to Medicare's calendar. You can switch Medigap plans at any time, though you may face underwriting (medical questions) if you switch outside of certain windows. If you are unhappy with a rate increase, you can shop for a different Medigap plan from a different insurer.

Some states regulate how much Medigap premiums can increase, while others do not. If you received a large rate increase notice from your Medigap insurer, you can call your state insurance commissioner's office to ask whether the increase is within allowed limits and what your options are.

Who gets help paying for the 2024 increases

Several programs help lower-income Medicare beneficiaries pay for premiums and cost-sharing. Extra Help covers Part D premiums and cost-sharing for people with limited income and resources. Medicaid can cover Part A and Part B premiums and deductibles for people who meet state income and asset limits. Medicare Savings Programs help pay Part B premiums, deductibles, and copayments for people with income between 100 and 200 percent of the federal poverty level.

If you receive one of these programs, the 2024 cost increases may be covered by the program, meaning your out-of-pocket costs do not change. However, you must stay enrolled in the program and meet its income and asset limits. If your income changed in 2023 or 2024, you may have lost may be able to access, so it is worth checking your status.

To learn whether you may be may be able to access for any of these programs, contact your state Medicaid office or call 1-800-MEDICARE. You can also visit your local Area Agency on Aging, which can help you understand your options.

What changed between 2023 and 2024

The Part B premium increase from $164.90 to $174.70 was a $9.80 monthly increase. The Part A hospital deductible rose from $1,600 to $1,632. The Part B annual deductible increased from $226 to $240. These increases are smaller than some years, partly because the 2024 Social Security cost of living adjustment (COLA) was 3.2 percent, which helped offset premium increases for many beneficiaries.

If you are on Original Medicare and your Social Security check increased by 3.2 percent or more in January 2024, your net out-of-pocket cost may have stayed the same or even decreased, depending on your specific situation. However, if you are in a Medicare Advantage or Medigap plan, your plan's cost changes are separate from the Social Security COLA, so you may have seen a net increase.

Frequently Asked Questions

Will my Social Security check cover the Medicare premium increase?

If your Social Security benefit increased by 3.2 percent or more in 2024, the increase may cover some or all of the Part B premium increase. However, this depends on your specific benefit amount and whether you are in Original Medicare or a private plan. If you are in a Medicare Advantage or Medigap plan, the premium increase is separate from Social Security, so you may owe more out of pocket.

Can I appeal my income-related premium adjustment?

Yes, if you had a major life change in 2023 or 2024 — such as retirement, a spouse's death, or a significant drop in income — you can request that CMS recalculate your premium using current income. You must file the appeal within 60 days of the event. Call 1-800-MEDICARE to start the process.

What if I cannot afford the 2024 premium increases?

You may be may be able to access for Extra Help, Medicaid, or a Medicare Savings Program, which can cover premiums and cost-sharing. Contact your state Medicaid office, call 1-800-MEDICARE, or visit your local Area Agency on Aging to learn what programs you may be may be able to access for based on your income and resources.

Do all Medicare Advantage plans have the same premium increase?

No. Each Medicare Advantage plan sets its own premium, and increases vary by plan and insurer. Some plans may have lowered premiums in 2024 while others raised them. You can compare plans and their 2024 costs on Medicare.gov or by calling 1-800-MEDICARE.

When can I switch plans if I do not like the 2024 costs?

The Annual Enrollment Period runs from October 15 to December 7 each year. During this time, you can switch Medicare Advantage plans, return to Original Medicare, or change your Part D plan. Changes take effect January 1. Outside this window, you can only switch if you have a may have access to life event, such as moving out of your plan's service area.