How to Save Money on Medicare in 2024: A Simple Guide to Part B

Did you know that in 2024, the standard Medicare Part B premium increased to $174.70 per month? That's a significant expense many beneficiaries face, especially when combined with the $240 annual deductible before coverage even begins.

Fortunately, you don't have to accept paying full price for your healthcare. Whether you're preparing for rising 2025 Medicare costs or seeking to cut your current expenses, we will show you practical strategies to save hundreds—even thousands—on your Medicare Part B coverage this year.

Know What Medicare Part B Covers and Costs

What Does Medicare Part B Cover?

Medicare Part B serves as your medical insurance component, covering a wide range of outpatient services deemed medically necessary. Unlike Part A, which focuses on hospital care, Part B handles the day-to-day medical services most people regularly use.

Part B Includes These Essential Services:

• Doctor visits and outpatient care
• Preventive services like screenings and vaccinations
• Durable medical equipment (walkers, wheelchairs, oxygen equipment)
• Emergency ambulance transportation
• Laboratory testing and diagnostic imaging
• Mental health services (outpatient)
• Physical and occupational therapy
• Certain specialized treatments (e.g., chemotherapy, dialysis, transplant-related care)

Preventive care remains a cornerstone of Part B coverage, including cancer, cardiovascular, and diabetes screenings, as well as vaccinations like flu and pneumococcal disease.

2024 Premium and Deductible Overview

For 2024, the standard monthly premium for Medicare Part B is $174.70, an increase of $9.80 from 2023. The annual deductible is $240. Most beneficiaries pay this standard amount, but actual costs can vary based on income.

2025 Cost Increases

Looking ahead to 2025:

• Standard monthly premium: $185.00
• Annual deductible: $257.00

These increases reflect projected growth in healthcare spending.

IRMAA and Higher-Income Costs

If your 2023 income exceeded $106,000 (individual) or $212,000 (joint), your 2025 monthly premium will range from $259.00 to $628.90, depending on income level. This affects approximately 8% of Medicare beneficiaries.

Understanding Coinsurance and Out-of-Pocket Costs

After meeting your deductible, Medicare Part B typically covers 80% of approved services. You’re responsible for the remaining 20%—with no out-of-pocket maximum.

• Most doctor visits: You pay 20% of Medicare-approved amount.
• Hospital outpatient services: You may pay 20% coinsurance + facility copayments.
• Insulin used with pumps (Part B): Capped at $35/month.
• Preventive services: Often free (no deductible or coinsurance).

Lower Your Monthly Costs with Assistance Programs

Several programs can reduce your Medicare Part B costs, especially for low-income beneficiaries. These programs expanded in 2024.

Extra Help (Low-Income Subsidy)

While focused on Part D costs, qualifying for Extra Help may unlock additional savings. In 2024, eligibility expanded to 150% of the federal poverty level.

• Income limits: $1,903/month (individual), $2,575/month (couple)
• Resource limits: $17,220 (individual), $34,360 (couple)

If you receive Medicaid, SSI, or a Medicare Savings Program, you automatically qualify. Others can apply at ssa.gov/extrahelp or call 1-800-772-1213.

Medicare Savings Programs (MSPs)

These programs help pay Part B costs:

• QMB: Covers Part A & B premiums, deductibles, coinsurance. Income: $1,325 (individual), $1,783 (couple)
• SLMB: Pays Part B premiums. Income: $1,585 (individual), $2,135 (couple)
• QI: Pays Part B premiums. Income: $1,781 (individual), $2,400 (couple)

All programs: Resource limits of $9,660 (individual) and $14,470 (couple). Some states may allow higher limits or disregard certain assets.

Avoiding Late Enrollment Penalties

Delaying Part B enrollment without qualifying coverage leads to permanent penalties:

• Part B: 10% premium increase for every 12-month delay.
• Part A: 10% increase if you pay a premium, lasting twice the number of years you delayed.
• Part D: 1% penalty per month without coverage, based on a national base premium (projected to be $36.78 in 2025).

Enroll during your Initial Enrollment Period unless you have creditable employer or union coverage.

Use Preventive and Low-Cost Services

Many preventive services are fully covered when your provider accepts Medicare assignment, with no deductible or coinsurance required.

Free Annual Wellness Visits and Screenings

• Routine measurements (height, weight, BP)
• Personalized health advice
• Prescription review
• Screening schedules
• Cognitive assessment

Other Preventive Services

• One free depression screening/year
• COVID-19 vaccines
• Smoking cessation counseling (up to 8 sessions/year)
• Medical nutrition therapy (for eligible conditions)

Mental Health and Outpatient Services

As of January 2024, coverage expanded to include licensed marriage and family therapists and mental health counselors. Covered services include:

• Individual/group psychotherapy
• Family counseling (if related to treatment)
• Psychiatric evaluations and medication management
• Safety planning for suicide risk
• Intensive outpatient programs

Typically, you pay 20% of the Medicare-approved amount after your deductible.

Insulin and Vaccine Cost Caps

• Insulin: Capped at $35/month per covered product, even before deductible.
• Vaccines: All ACIP-recommended vaccines (e.g., shingles, RSV, Tdap) are free under Part D as of 2023.

Plan Ahead

Navigating Medicare Part B costs requires awareness of your coverage, cost-sharing, and savings options. While costs are rising in 2025, financial assistance programs and preventive services can significantly reduce your out-of-pocket burden.

Whether it's applying for Extra Help, enrolling in Medicare Savings Programs, or simply taking full advantage of your wellness visits and screenings, proactive planning is key to keeping healthcare affordable. Also, avoid late enrollment penalties by enrolling during your Initial Enrollment Period or ensuring you have creditable coverage.