Welcome to 2024! We sure hope this year is filled with blessings and wonderful opportunities. That being said, let’s roll right into some changes with this new year. The government is making a few adjustments as the cost of living has increased these last few years. Let’s discuss the Medicare premiums and deduction changes

Medicare: 

The Social Security Act decides Medicare Part B’s premiums, coinsurances, and deductibles. Part B covers medical expenses with physicians, outpatient services, some home services, and some medical equipment. Part B is the most common Medicare for many adults. By 2022, Part B premiums will rise over twenty dollars from last year, making the jump from $148.50 to $170.10. The annual deductible increased from $203 to $233. Increased provider and facility costs are to blame. 

Medicare Part A covers medical expenses like inpatient services, hospital procedures, and rehabilitation, as well as nursing facility and hospice costs. Inpatient hospital service deductibles increased from $1,484 in 2021 to $1,556 this year. 

Medicare Part D has income-based premiums. Each year, the government uses the previous year’s taxes to determine income-based premiums. Those affected this year will have to add X amount each month to their premiums. If single filers are at or below $91,000 yearly, no added amount occurs. Joint filers who are at or below $182,000 yearly won’t have an added monthly amount. After those annual incomes, monthly increases range from $12.40 to $77.90 depending on the filer’s AGI. 

For more information on Medicare costs, visit the Center for Medicare and Medicaid Services.