Short answer YES
In 2024, Medicare beneficiaries face adjustments in premiums and deductibles set by the Centers for Medicare & Medicaid Services (CMS). The changes reflect anticipated rises in healthcare spending, impacting both Medicare Part B and Part D coverage.
What was the increase?
The Centers for Medicare & Medicaid Services (CMS) announced that the standard monthly Part B premium would increase to $174.70, up $9.80 from the previous year ($184.50). Additionally, the annual deductible for all Medicare Part B enrollees in 2024 will be $240, marking a $14 increase from the deductible in 2023.
These adjustments are primarily attributed to projected increases in healthcare spending. Certain beneficiaries, based on their modified adjusted gross income, will continue to pay higher premiums.
For 2024, the monthly Part B premium, including an income-related adjustment, will range from $244.60 to $594.00, with the highest rate applicable to beneficiaries whose incomes exceed $500,000 (or $750,000 for married couples). It is estimated that about 8% of Medicare beneficiaries pay these income-adjusted premiums.
Moreover, beneficiaries enrolled in Medicare Part D prescription drug coverage plans experience varying premiums depending on the plan. Those with modified adjusted gross incomes surpassing specific thresholds, similar to those for Part B premiums, will pay a monthly adjustment amount ranging from $12.90 to $81.00 in 2024.
How much does the Railroad Retirement Board Withhold?
The Railroad Retirement Board withholds Part B premiums, Part B income-related adjustments, and Part D income-related adjustments from benefit payments. Additionally, the agency can withhold Part C and D premiums upon request.
The income-related Part B premium adjustments for 2024 are detailed in the next section. Determinations are made by the Social Security Administration using the beneficiary’s 2022 tax return information.
Beneficiaries affected by these adjustments will receive notices from SSA by year-end, with explanations on requesting new determinations if needed. For inquiries or new determinations, beneficiaries should contact SSA after receiving their notice. Further details on Medicare coverage, benefits, and deductibles can be found at Medicare.gov.
Monthly premium rates for individual and joint tax filers
In 2024, Part B premiums vary based on income and filing status:
For individuals with income ≤ $103,000 (or joint ≤ $206,000), the premium is $174.70.
Income between $103,000 to $129,000 (or joint $206,000 to $258,000) incurs a $69.90 adjustment, resulting in a $244.60 premium.
Those earning $129,000 to $161,000 (or joint $258,000 to $322,000) face a $174.70 adjustment, making the premium $349.40.
Incomes of $161,000 to $193,000 (or joint $322,000 to $386,000) lead to a $279.50 adjustment, totaling $454.20.
Earning $193,000 to $500,000 (or joint $386,000 to $750,000) means a $384.30 adjustment, resulting in a $559.00 premium.
Individuals with incomes ≥ $500,000 (or joint ≥ $750,000) incur a $419.30 adjustment, resulting in a $594.00 premium.
Monthly premium rates for married filing separate
For married beneficiaries filing separately with income ≤ $103,000, the premium is $174.70.
Income between $103,000 to $397,000 incurs a $384.30 adjustment, resulting in a $559.00 premium.
Earning $397,000 or more means a $419.30 adjustment, totaling a $594.00 premium.
Conclusion
As healthcare costs continue to evolve, understanding Medicare premiums and deductions is crucial for beneficiaries. The Railroad Retirement Board administers these adjustments, ensuring effective distribution of benefits to retirees.
