Retirees can anticipate increased Medicare Part B premiums in 2024, with key information to help manage these costs. These premiums have an impact on the size of monthly Social Security checks. Social Security beneficiaries are set to receive a 3.2% increase in their benefits starting in January 2024, leading to an average increase of over $50 per month in retirement benefits.

One of the factors influencing the amount beneficiaries receive is their Medicare Part B premium, which is typically deducted directly from Social Security payments. Medicare Part B provides coverage for healthcare costs, encompassing services from doctors and other healthcare providers, outpatient treatments, home health care, durable medical equipment, and specific preventive services.

In 2024, the standard monthly premium for Medicare Part B is expected to rise by $9.80 per month to reach $174.70, up from $164.90 per month in the previous year. Nonetheless, those with elevated incomes will experience increased premiums due to income-related monthly adjustment amounts (IRMAA).

To appeal your Medicare Part B premium, you usually need a notable change in your financial situation. Such changes could include a decrease in income since 2022 due to events like the death of a spouse, divorce, loss of a pension, or starting retirement. You can file an appeal after receiving your benefit notice for 2024.

Medicare Part B premium amounts are based on beneficiaries’ modified adjusted gross income from two years prior, which means that 2024 premiums are determined by the 2022 federal tax returns. This income includes various sources such as wages, retirement distributions, capital gains, investment income, rental income, and Social Security benefits, as well as tax-exempt interest. Even a small increase in income, such as an additional dollar, could push you into a higher premium bracket if you are close to the income thresholds.

Certain tax strategies, like Roth individual retirement account conversions, can lead to higher taxable income for the year in which the transaction occurs, potentially resulting in higher Medicare Part B premiums. Although you can’t directly reduce your premium, you can prevent its escalation by prudently handling your income. Take into account the income thresholds, but also bear in mind that these brackets may change in the years ahead.