Medicare Part A is the part of Medicare that covers inpatient hospital services, skilled nursing facility care, hospice care, and some home health care services. Medicare Part A is usually premium-free for most people who have paid Medicare taxes for at least 10 years. However, Medicare Part A also has a deductible that beneficiaries have to pay before Medicare covers their hospital costs. The deductible amount changes every year based on inflation and other factors. In this article, we will explain what the Medicare Part A deductible is, how much it will be in 2024, and how it may affect your out-of-pocket expenses.
What is the Medicare Part A Deductible?
The Medicare Part A deductible is the amount that you have to pay for each benefit period before Medicare starts to pay for your inpatient hospital costs. A benefit period begins when you are admitted to a hospital or a skilled nursing facility and ends when you have been out of the hospital or facility for 60 consecutive days. You can have more than one benefit period in a year, and each benefit period has a new deductible.
The Medicare Part A deductible covers your share of the costs for the first 60 days of inpatient hospital care in each benefit period. After that, you have to pay a daily coinsurance amount for each day you stay in the hospital beyond 60 days. The coinsurance amount also changes every year based on inflation and other factors.
The table below shows the Medicare Part A deductible and coinsurance amounts for 2023 and 2024.
| Year | Deductible | Coinsurance (Days 61-90) | Coinsurance (Days 91+) |
| 2023 | $1,600 | $389 per day | $778 per day |
| 2024 | $1,612 | $403 per day | $806 per day |
As you can see from the table, the Medicare Part A deductible will increase by $56 in 2024, from $1,556 to $1,612. This means that if you are admitted to a hospital in 2024, you will have to pay $1,612 before Medicare covers your hospital costs. The coinsurance amounts will also increase by $14 per day for days 61-90 and by $28 per day for days 91 and beyond.
How Does the Medicare Part A Deductible Affect Your Out-of-Pocket Expenses?
The Medicare Part A deductible can affect your out-of-pocket expenses depending on how often you use inpatient hospital services and how long you stay in the hospital. If you have only one or a few hospital stays in a year, and they are shorter than 60 days, you may only have to pay the deductible once or twice. However, if you have frequent or long hospital stays in a year, you may have to pay the deductible multiple times and also pay the coinsurance amounts for each day beyond 60 days.
For example, suppose you are admitted to a hospital twice in 2024, once in January and once in July. Each stay lasts for 50 days. In this case, you will have to pay the deductible twice, once for each benefit period, for a total of $3,224 ($1,612 x 2). You will not have to pay any coinsurance because your stays are shorter than 60 days.
However, suppose you are admitted to a hospital three times in 2024, once in February, once in June, and once in October. Each stay lasts for 70 days. In this case, you will have to pay the deductible three times, once for each benefit period, for a total of $4,836 ($1,612 x 3). You will also have to pay the coinsurance for each day beyond 60 days in each stay, for a total of $12,090 ($403 x 10 x 3). Your total out-of-pocket expenses for your hospital stays will be $16,926 ($4,836 + $12,090).
How Can You Lower Your Out-of-Pocket Expenses for Medicare Part A?
There are some ways that you can lower your out-of-pocket expenses for Medicare Part A if you want to reduce your financial burden. Here are some options that you can consider:
- Enroll in a Medicare Advantage Plan (Part C). Medicare Advantage Plans are offered by private insurance companies that contract with Medicare to provide all the benefits of Part A and Part B. Some Medicare Advantage Plans may have lower deductibles and coinsurance amounts than Original Medicare (Part A and Part B). They may also offer additional benefits such as vision, dental, hearing, catastrophic coverage and prescription drug coverage. However, Medicare Advantage Plans may also have higher premiums than Original Medicare and may limit your choice of providers and require referrals or prior authorization for certain services.
- Enroll in a Medicare Supplement Plan (Medigap). Medicare Supplement Plans are also offered by private insurance companies that help pay some of the costs that Original Medicare does not cover, such as deductibles, coinsurance, and copayments. Medicare Supplement Plans can help lower your out-of-pocket expenses for Part A and Part B. However, Medicare Supplement Plans do not cover any additional benefits that Medicare Advantage Plans may offer, such as vision, dental, hearing, and prescription drug coverage. They also have their own premiums that you have to pay in addition to your Part B premium.
- Apply for a Medicare Savings Program (MSP). Medicare Savings Programs are state-run programs that help low-income Medicare beneficiaries pay for some or all of their Medicare monthly premiums, deductibles, coinsurance, and copayments. There are four types of MSPs: Qualified Medicare Beneficiary (QMB), Specified Low-Income Medicare Beneficiary (SLMB), Qualifying Individual (QI), and Qualified Disabled and Working Individuals (QDWI). Each MSP has its own eligibility criteria based on your income and resources. You can apply for an MSP through your state Medicaid agency.
- Apply for Extra Help. Extra Help is a federal program that helps low-income Medicare beneficiaries pay for their prescription drug costs under Medicare Part D drug plan. Extra Help can help lower your Part D premiums, deductibles, coinsurance, and copayments. It can also help you avoid the coverage gap (donut hole) and the late enrollment penalty for Part D. You can apply for Extra Help through the Social Security Administration or your state Medicaid agency.
Conclusion
The Medicare Part A deductible is the amount that you have to pay for each benefit period before Medicare covers your inpatient hospital costs. The deductible amount changes every year based on inflation and other factors. In 2024, the Medicare Part A deductible will be $1,612, which is an increase of $56 from 2023. The deductible can affect your out-of-pocket expenses depending on how often you use inpatient hospital services and how long you stay in the hospital. You can lower your out-of-pocket expenses by enrolling in a Medicare Advantage Plan, a Medicare Supplement Plan, a Medicare Savings Program, or Extra Help.
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FAQs
What is the Medicare Part A Premium for 2024?
The Medicare Part A Premium for 2024 is expected to be $0 for most beneficiaries who have at least 40 quarters of Medicare-covered employment.
Will the Medicare Part A Premium for 2024 increase?
No, the Medicare Part A Premium is expected to remain the same in 2024 for most beneficiaries.
How is the Medicare Coverage Part A Premium determined?
The Medicare Part A Premium is based on an individual’s work history and the number of quarters they have paid Medicare taxes.
Are Medicare Part B premiums expected to increase in 2024?
A: It is unclear at this time whether Medicare Part B premiums will increase in 2024. Changes to Part B premiums are typically announced in the fall of the previous year.
Will the Inflation Reduction Act affect Medicare Part B premiums?
The Inflation Reduction Act does not specifically address Medicare Part B premiums.
What is the Medicare Part D premium for 2024?
The Medicare Part D premiums for 2024 vary depending on the specific Part D Plan chosen by the beneficiary. It is best to contact individual Part D Plan providers for specific premium information.
Are Medicare Part D premiums expected to increase in 2024?
Medicare Part D premiums are expected to increase slightly in 2024 due to factors such as inflation and the rising cost of prescription drugs.
How do I find out the Medicare Part D premium for my specific plan?
To find out the Medicare Part D premium for your specific plan, you can contact your Part D Plan provider or visit the Centers for Medicare & Medicaid Services (CMS) website.
What is the Medicare Part B premium for 2024 and 2025?
The Medicare Part B premium for 2025 has not yet been announced. Changes to Part B premiums are typically announced in the fall of the previous year.
How can I lower my Medicare costs?
There are several ways to potentially lower your Medicare premiums, such as qualifying for Medicare Savings Programs, enrolling in a Medicare Advantage or Part D Plan with lower premiums, or exploring Medicare Supplement (Medigap) options.