With a new year often comes change. This statement holds true as we look at some key changes to Social Security and Medicare for 2024.
Social Security
- For those receiving Social Security, you’ve likely noticed an increase in your benefits in the new year. Social Security recipients received a 3.2% annual cost-of-living adjustment for 2024 which equates to an approximate $50/month increase in benefits on average.
Medicare
- Part B (medical insurance): The standard Medicare Part B premium is $174.70 per month for 2024. This $10 per month adjustment represents a 5.9% increase from the $164.90 per month premium in 2023. The Part B deductible also increased to $240 for the year.
- Part D (prescription drug coverage): You may see a slight decrease or similar premium based on selected coverage. The Inflation Reduction Act also limits base prescription drug premiums from increasing more than 6% per year beginning in 2024 and continuing through 2029.
- Income-related monthly adjustment amount (IRMAA): IRMAA is a surcharge added to Medicare Part B and Part D premiums for higher-income individuals. IRMAA is calculated based on the person’s modified gross income (MAGI) and tax filing status reported on your IRS tax return from two years before the current year. So in 2024, if your 2022 income exceeded $103,000 (single) or $206,000 (married filing jointly), you’ll pay the standard $174.70/month plus an additional IRMAA premium for Part B and Part D. Note, Part B IRMAA is automatically added to your monthly premium bill, but Part D IRMAA must be paid directly to Medicare even if your employer pays your Part D premium. If your income has changed since 2022, you can appeal an IRMAA decision and request a reconsideration based on certain life-changing events that caused your income to decrease. The current income bracket thresholds are listed below which determine applicable IRMAA surcharges in 2024 based on your 2022 MAGI.
| Single | Married Filing Jointly | Part B IRMAA
per month |
Part D IRMAA
per month |
| less than $103k | less than $206,000 | $0.00 | $0.00 |
| $103,001-$129,000 | $206,001-$258,000 | $69.90 | $12.90 |
| $129,001-$161,000 | $258,001-$322,000 | $174.70 | $33.30 |
| $161,001-$193,000 | $322,001-$386,000 | $279.50 | $53.80 |
| $193,001-$500,000 | $386,001-$750,000 | $384.30 | $74.20 |
| >$500,000 | >$750,000 | $419.30 | $81.00 |
- In addition to the premium, deductible, and IRMAA changes in 2024, there are also important coverage changes to be aware of:
- Chronic Pain Treatment: Medicare will now cover monthly services to treat chronic pain if you have suffered from recurring pain for at least three months. This coverage includes assessment, medication management, and care coordination. You will be subject to the Part B deductible and co-pay.
- Insulin: The cost of a one-month supply of insulin is capped at $35 in all Part D plans and a deductible does not apply.
- Vaccinations: Medicare has expanded the types of vaccines covered. Most notably, shingles will now be covered under part D.
- Mental Health Services: Coverage is expanded to cover services provided by marriage and family therapists and mental health counselors.
As always, if you have questions, please reach out to a member of your Waverly Team.
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