Because of the nature of the legislation Congress used to create Medicare, the program has three major separate parts: Medicare Part A hospitalization coverage, Medicare Part B physician and outpatient services coverage and Medicare Part D prescription drug coverage.
Consumers and federal subsidies pay for Medicare Part B and Medicare Part D coverage.
Program managers use payroll tax revenue to pay for the Medicare Part A hospitalization program.
Managers classify most Part A program enrollees as having already paid for their coverage in full.
The only enrollees who pay Part A premiums are those who lack enough of the right kind of work experience in the United States.
High-income enrollees: Originally, Medicare designers wanted the program to provide equal coverage for all Americans, including wealthy people, to ensure that the program would have the broadest possible support.
Over the years, Congress has responded to concerns about program finances by adding adjustments aimed at high earners.
For the Medicare Part B program, for example, managers impose an income-related monthly adjustment amount, or IRMAA.
Congress has set income category limits for Medicare programs, and Medicare program managers adjust the limits each year.
For 2024, for example, the upper limit on annual income for the lowest income category for individual filers, who pay no IRMAA, will be $103,000, up 6.2% from 2023 limit.
The lower limit for married joint filers in the highest-income category will be $750,000, which is the same as in 2023.
Costs for Full Medicare Part B Physician and Hospital Services Coverage |
2024 |
2023 |
Modified adjusted gross Income (MAGI) category limits for… |
Monthly premium |
MAGI category limits for… |
Monthly premium |
Individual filers |
Joint filers |
|
Individual filers |
Joint filers |
|
Change |
Less than or equal to $103,000 |
Less than or equal to $206,000 |
$174.70 |
Less than or equal to $97,000 |
Less than or equal to $194,000 |
$164.90 |
+5.9% |
Greater than $103,000 and less than or equal to $129,000 |
Greater than $206,000 and less than or equal to $258,000 |
$244.60 |
Greater than $97,000 and less than or equal to $123,000 |
Greater than $194,000 and less than or equal to $246,000 |
$230.80 |
+6.0% |
Greater than $129,000 and less than or equal to $161,000 |
Greater than $258,000 and less than or equal to $322,000 |
$349.40 |
Greater than $123,000 and less than or equal to $153,000 |
Greater than $246,000 and less than or equal to $306,000 |
$329.70 |
+6.0% |
Greater than $161,000 and less than or equal to $193,000 |
Greater than $322,000 and less than or equal to $386,000 |
$454.20 |
Greater than $153,000 and less than or equal to $183,000 |
Greater than $306,000 and less than or equal to $366,000 |
$428.60 |
+6.0% |
Greater than $193,000 and less than $500,000 |
Greater than $386,000 and less than $750,000 |
$559.00 |
Greater than $183,000 and less than $500,000 |
Greater than $366,000 and less than $750,000 |
$527.50 |
+6.0% |
Greater than or equal to $500,000 |
Greater than or equal to $750,000 |
$594.00 |
Greater than or equal to $500,000 |
Greater than or equal to $750,000 |
$560.50 |
+6.0% |
x
Medicare Part A Inpatient Hospitalization Cost-Sharing |
|
2024 |
2023 |
Change |
Inpatient hospital deductible |
$1,632 |
$1,600 |
+2.0% |
Daily hospital coinsurance for the 61st through 90th day |
$408 |
$400 |
+2.0% |
Daily hospital coinsurance for lifetime reserve days |
$816 |
$800 |
+2.0% |
Skilled nursing facility daily coinsurance (days 21 through 100) |
$204.00 |
$200.00 |
+2.0% |
x
Extra Charges for High-Income Buyers of Medicare Part D Prescription Drug Coverage |
2024 |
2023 |
MAGI category limits for… |
Monthly premium |
MAGI category limits for… |
Monthly premium |
Change |
Individual filers |
Joint filers |
|
Individual filers |
Joint filers |
|
|
Less than or equal to $103,000 |
Less than or equal to $206,000 |
$0.00 |
Less than or equal to $97,000 |
Less than or equal to $194,000 |
$0.00 |
+0% |
Greater than $103,000 and less than or equal to $129,000 |
Greater than $206,000 and less than or equal to $258,000 |
$12.90 |
Greater than $97,000 and less than or equal to $123,000 |
Greater than $194,000 and less than or equal to $246,000 |
$12.20 |
+5.7% |
Greater than $129,000 and less than or equal to $161,000 |
Greater than $258,000 and less than or equal to $322,000 |
$33.30 |
Greater than $123,000 and less than or equal to $153,000 |
Greater than $246,000 and less than or equal to $306,000 |
$31.50 |
+5.7% |
Greater than $161,000 and less than or equal to $193,000 |
Greater than $322,000 and less than or equal to $386,000 |
$53.80 |
Greater than $153,000 and less than or equal to $183,000 |
Greater than $306,000 and less than or equal to $366,000 |
$50.70 |
+6.1% |
Greater than $193,000 and less than $500,000 |
Greater than $386,000 and less than $750,000 |
$74.20 |
Greater than $183,000 and less than $500,000 |
Greater than $366,000 and less than $750,000 |
$70.00 |
+6.0% |
Greater than or equal to $500,000 |
Greater than or equal to $750,000 |
$81.00 |
Greater than or equal to $500,000 |
Greater than or equal to $750,000 |
$76.40 |
+6.0% |
The Centers for Medicare and Medicaid Services offices in Woodlawn, Maryland. Credit: Jay Mallin/Bloomberg