People who have Medicare Part B, even with the standard coverage, are still required to pay a monthly premium. The standard monthly premium for Medicare Part B in 2024 is $174.70. This premium is mandatory for all beneficiaries of Medicare Part B, regardless of whether they have additional coverage or just the standard Part B coverage.
The premium is usually deducted from your Social Security, Railroad Retirement, or Civil Service Retirement checks. If you do not receive any of these payments, you will get a bill for your Medicare Part B premium.
Medicare Part B covers medically necessary services like doctors’ services, outpatient care, home health services, durable medical equipment, and some preventive services.
- Standard Part B Premium: This is the base premium that most people pay. For 2024, the standard monthly premium for Medicare Part B is $174.70.
- Income-Related Monthly Adjustment Amount (IRMAA) Premium: If your income is above a certain threshold, you may pay more than the standard premium. This is known as the Income-Related Monthly Adjustment Amount (IRMAA). The premium increases on a sliding scale based on your income reported on your tax return from two years prior.
Deductible Cost
- Part B Deductible: In 2024, the annual deductible for Medicare Part B is $240. This means you must pay the first $240 of Medicare-approved services out-of-pocket before Medicare starts paying its share.
Late Enrollment Penalty
If you don’t sign up for Medicare Part B when you’re first eligible and don’t have other creditable coverage (like from an employer), you may have to pay a late enrollment penalty.
- Penalty Calculation: The penalty is an additional 10% of the standard premium for each full 12-month period that you could have had Part B but didn’t enroll.
Example Scenario
Let’s say someone was eligible for Medicare Part B in January 2022 but didn’t enroll until September 2023. This person delayed enrollment by 20 months. Here’s how the penalty would work:
- 20 months = 1 full 12-month period + 8 months
- The penalty would be 10% of the standard premium for 1 full 12-month period.
Penalty Calculation for 2024:
- Standard premium (2024): $174.70
- Penalty: 10% of $174.70 = $17.47
- New monthly premium: $174.70 + $17.47 = $192.17
This penalty continues for as long as you have Medicare Part B. So, if this person lives another 20 years, they will pay the penalty for 20 years.
Income-Related Premium Example:
- If this same person has a higher income, let’s say their adjusted gross income is $150,000 in 2022. The IRMAA might increase their premium to $230.80 in 2024. The penalty would be 10% of the standard $174.70, not the higher IRMAA amount.
- Penalty: 10% of $174.70 = $17.47
- New monthly premium: $230.80 + $17.47 = $248.27
Penalty Duration
The penalty lasts for as long as you are enrolled in Medicare Part B. It is a lifetime penalty, meaning you’ll continue to pay the higher premium indefinitely.
Summary
- Standard Premium: $174.70 (2024)
- Part B Deductible: $240 (2024)
- Penalty: 10% of the standard premium for each full 12-month period of delayed enrollment.
- Example Penalty: A 20-month late enrollment results in a lifetime premium of $192.17 (standard) or $248.27 (with IRMAA).
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