The Centers for Medicare and Medicaid Services (CMS) announced that Medicare enrollees will experience an increase in their monthly Part B premiums next year. The standard monthly premium for Medicare Part B will be $174.70 for 2024, which is $10 higher compared to this year’s premium of $164.90. The increase is mainly attributed to projected increases in healthcare spending and payments proposed by CMS to hospitals serving disadvantaged patients. Additionally, the annual Part B deductible will rise to $240 in 2024, an increase of $14. Medicare Part B covers various medical and health services not included in Medicare Part A.
This premium increase will lead to a smaller monthly bump of less than $50 in Social Security benefits for retirees in the coming year. The Social Security Administration announced a 3.2% cost-of-living adjustment for 2024, which is significantly lower than the past two years due to inflation. Retirees’ monthly payments will rise by $59 on average, totaling an estimated average of $1,907 starting from January. However, this amount does not account for the deduction of Medicare premiums from these payments. It should be noted that Medicare premiums have fluctuated in recent years, with the standard monthly premium experiencing a 14.5% spike in 2022 due to projected spending increases caused by the costly Alzheimer’s drug, Aduhelm.
Overall, the increase in Medicare Part B premiums will impact retirees’ Social Security benefits, resulting in a smaller net increase. The rising premiums reflect projected increases in healthcare spending and proposed payments to hospitals serving disadvantaged patients. While retirees will see a modest increase in their monthly payments, it is important to consider the deduction of Medicare premiums from these amounts.
