Medicare Part B

For 2024, the monthly premium for Part B is $174.70 but it is higher for those with higher income. This is referred to as IRMAA (Income Related Monthly Adjustment Amount). For 2024, individuals who’s income is $103,000 ($206,00 for you and a spouse). HOWEVER, this is based on your tax return of 2 years ago. There are 4 more income brackets which will increase the Part B premium. The government adjusts these brackets yearly to compensate for the cost of living. Lowering your taxable income can help you avoid these income penalties, and you should consult with your tax accountant. The “IRMAA” (Income Related Month Adjustment Amount) also applies to Part D. More information is available at Medicare.gov.

There is also a Part B penalty for those who don’t sign up when they’re first eligible for Medicare IF you don’t have other credible health coverage. This could also apply if you dropped or lost coverage and went longer than 8 months without coverage. 

With Part B of original Medicare there is also a yearly deductible. For 2024 that is $240. And in original Medicare after the deductible, there are a number of “holes”, where you are responsible for co-insurance. This is 20 percent of the Medicare-approved amount for most covered services, and there Is NO annual out-of-pocket maximum (or limit).

This, along with various other supplemental benefits that original Medicare does NOT cover, like dental, vision, hearing (and some others) are why people choose to explore Medicare Advantage plans. Medigap plans help fill those holes of original Medicare as well, but typically don’t include the various supplemental benefits, and can be on the expensive side for some people, depending on the plan chosen. With Medigap plans, you also need a separate Part D drug plan.

Feel free to give my office a call and we’ll be happy to answer your questions! Call 208-350-3708.