he Centers for Medicare & Medicaid Services (CMS) recently announced the 2024 costs for Medicare Part A and Part B. These costs take effect January 1, 2024.
Medicare Part A covers inpatient hospital care, care in a skilled nursing facility (up to 100 days), some home health care, and hospice services. The costs next year will be:
- Premium: Most people get Part A for free because they, their spouse, or in some cases their parent, have paid Medicare taxes while working. However, for those who must buy Part A, the monthly premium in 2024 can be as much as $505.
- Hospital Stay: The inpatient deductible is $1,632 per benefit period. If someone is in the hospital longer than 60 days, their cost-sharing will be: $408/day for days 61-90 and $816/day for days 91-150.
- Skilled Nursing Facility Stay: Medicare can cover up to 100 days in a skilled nursing facility when someone meets the criteria for Medicare to pay for this care. There is no cost for care for the first 20 days. For days 21-100, the beneficiary will have a daily co-pay of $204.00.
Medicare Part B covers outpatient care such as doctor visits, outpatient hospital services, diagnostic tests, ambulance services, durable medical equipment, mental health services, and more. The costs next year will be:
- Premium: Everyone on Medicare is subject to a monthly Part B premium. In 2024, the standard premium will be $174.70/month (up from $164.90 in 2023). Most people will pay this premium amount next year.
A small percentage of Medicare beneficiaries will pay a slightly lower amount because of Medicare's hold-harmless provision. This rule protects people who have their Part B premium deducted from their monthly Social Security check from a Part B premium increase that would exceed their Social Security benefits increase, to avoid leaving these beneficiaries with a lower net Social Security benefit in 2024 than they received in 2023. Social Security has announced that beneficiaries will receive a 3.2% cost-of-living adjustment (COLA) in 2024, which should cover the increased Part B premium for most beneficiaries.
People with higher incomes pay a higher premium. As a reminder, people with limited incomes and resources can qualify for Medicaid to pay their Part B premium through the Medicare Savings Programs or “Medicare Buy-In”.
- Other Part B Costs in 2024: The annual deductible will be $240 (up from $226 in 2023). That is the amount Medicare beneficiaries must pay for services before their Part B coverage kicks in. After that, Original Medicare covers outpatient physical and mental health services at 80 percent and the beneficiary pays the remaining 20 percent.
Medicare beneficiaries are responsible for paying the monthly Part A (if any) and Part B premiums regardless of how they get their Medicare – whether through Original Medicare or a Medicare Advantage plan. Individuals with Original Medicare (who use the red, white and blue card when getting care) and no additional insurance are subject to the Part A and B deductibles and co-insurance amounts described above. Those in a Medicare Advantage plan pay the deductibles, co-insurance and co-pays set by their plan. Dual eligibles with Medicare and Medicaid insurance use their Medicaid coverage to pay their Part A and B deductibles, co-insurance and co-pays and should only be charged the small Medicaid co-pay that applies to the service they get.
Dual eligibles who are in Community HealthChoices for their Medicaid can find out more information about copays by contacting their plan or reviewing their plan’s Participant Handbook. Duals who get their Medicaid through the ACCESS card can find more information about copays here, and can call the Medicaid Fee For Service line at 1-800-537-8862 with questions about any bills they receive.
More information about Medicare Part A and B costs in 2024 can be found here. We encourage readers who have questions about their Medicare coverage to call PA MEDI at 1-800-783-7067.