Insurance & Risk Management

Medicare Part B and Part D Premium Adjustments for 2024

Medicare Part B premiums are automatically deducted from Social Security, Railroad Retirement Board, and Office of Personnel Management payments. The standard Medicare Part B premium is adjusted based on a taxpayer’s Modified Adjusted Gross Income (MAGI). MAGI for Medicare purposes is the taxpayer’s AGI plus any tax-exempt interest. Medicare uses a taxpayer’s MAGI from two years prior to determine any premium adjustment. For example, the MAGI from the 2022 tax return will determine 2024 Medicare premiums.

The standard Part B premium amount in 2024 is $174.70. Based on a taxpayer’s Modified Adjusted Gross Income, they may be required to pay an Income Related Monthly Adjustment Amount (IRMAA) on their Part B premium. MAGI thresholds and the associated Part B IRMAA is shown in the table below for each tax filing status:

If your yearly income in 2022 (for what you pay in 2024) was

You pay each month (in 2024)

File individual tax return

File joint tax return

File married & separate tax return

$103,000 or less

$206,000 or less

$103,000 or less

$174.70

above $103,000 up to $129,000

above $206,000 up to $258,000

Not applicable

$244.60

above $129,000 up to $161,000

above $258,000 up to $322,000

Not applicable

$349.40

above $161,000 up to $193,000

above $322,000 up to $386,000

Not applicable

$454.20

above $193,000 and less than $500,000

above $386,000 and less than $750,000

above $103,000 and less than $397,000

$559.00

$500,000 or above

$750,000 or above

$397,000 or above

$594.00

(https://www.medicare.gov/your-medicare-costs/part-b-costs)

At open enrollment, Medicare participants have the option to enroll in Part D prescription drug plans. Part D premiums are in addition to Medicare Part B supplement premiums and they vary per plan. Taxpayers with a higher MAGI will be required to pay a Medicare Part D surcharge in addition to their plan’s premium. Similarly to Part B premiums, the surcharge will be deducted from Social Security benefits if the participant is receiving them: otherwise, the individual will receive a bill for the monthly surcharge amount. The Part D IRMAA for 2024 is shown in the table below:

If your filing status and yearly income in 2022 was

File individual tax return

File joint tax return

File married & separate tax return

You pay each month (in 2023)

$103,000 or less

$206,000 or less

$103,000 or less

your plan premium

above $103,000 up to $129,000

above $206,000 up to $258,000

Not applicable

$12.90 + your plan premium

above $129,000 up to $161,000

above $258,000 up to $322,000

Not applicable

$33.30 + your plan premium

above $161,000 up to $193,000

above $322,000 up to $386,000

Not applicable

$53.80 + your plan premium

above $193,000 and less than $500,000

above $386,000 and less than $750,000

above $103,000 and less than $397,000

$74.20 + your plan premium

$500,000 or above

$750,000 or above

$397,000 or above

$81.00 + your plan premium

 

(https://www.medicare.gov/drug-coverage-part-d/costs-for-medicare-drug-coverage/monthly-premium-for-drug-plans)

 

Editors’ Note: This article was originally published in 2020, but has been updated to reflect 2024 data.

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