The world of Medicare is always evolving. Each year, coverage, premiums, deductibles and copayments/ coinsurance are likely to change, and there could be Medicare program changes as well. It’s important to stay up to date. We know you probably have a lot of questions, and that’s why we’re here.
So what’s different for Medicare in 2024? We’ll go through the changes so you can get a better understanding of what they mean for you and your coverage.
Key Medicare premium changes in 2024
There are several changes to Medicare premiums in 2024 that will impact what you can expect to pay. Overall, beneficiaries will see premiums remain flat or experience a slight increase. And these aren’t the only changes you should expect.
2024 Medicare Part A premiums
About 99% of Medicare beneficiaries don’t pay a Part A (hospital coverage) premium. However, for those without premium-free Part A coverage in 2024, monthly premium costs will be either $278 (unchanged from 2023) or $505 (a $1 decrease from 2023). This cost depends on how long you worked and paid Medicare taxes. If your income is lower, you may be eligible for a Medicare Savings Program.
2024 Medicare Part B premiums
The standard monthly Medicare Part B (medical coverage) premium has increased to $174.70, up $9.80 from 2023. These premiums are calculated on a sliding scale based on your adjusted gross income. For many, that might not be much of a change, but for some, it can be. If you need help with costs, you may be eligible for a Medicare Savings Program.
2024 Medicare Part D premiums
Based on current enrollment, the average 2024 premium for Part D (prescription drug coverage) plans is projected to decrease slightly from last year, from $56.49 to $55.50. This is due largely to changes implemented by the Inflation Reduction Act passed in 2022.
Those who need help lowering prescription drug costs can work with their doctor to shift to generic brands or other lower-cost drugs, explore new plan options or apply for Medicare’s Extra Help program. This year, more people will be able to qualify for Extra Help, which CMS expects will help enrollees save around $300 a year.
Most Medicare Advantage plan (Part C) premiums are lower
Are you enrolled in or considering a Medicare Advantage plan (Part C)? The average Part C premium is expected to stay mostly unchanged for 2024 at around $18.50. Around 73% of beneficiaries won’t see an increase.
Medicare Advantage plans can offer a robust selection of additional benefits, like hearing, dental and vision care, as well as gym memberships and travel coverage. Plus, most plans do not have a medical deductible and include Part D prescription drug coverage.
Similar to a recent change to Original Medicare, in 2024, some Medicare Advantage plans implemented a $35 cost limit on monthly insulin supplies. Part C coverage also includes broader access to behavioral health services. Also, there are more limits on requirements carriers can impose regarding prior authorization for treatments.
Medicare deductibles in 2024
This year, caps on annual deductibles for Medicare Part A, Part B and Part D have changed. While costs may vary by plan, here are the maximum amounts you might have to pay to cover a deductible.
- Part A deductible: $1,632 (up from $1,600 in 2023)
- Part B deductible: $240 (up from $226 in 2023)
- Part D deductible: $545 (up from $505 in 2023)
Part D coverage and benefits changes in 2024
While many aspects of your benefits and coverage have remained the same, 2024 is a big year for Medicare Part D. Here are some important updates.
Medicare drug coverage updates
For Medicare Part D, you can anticipate new cost-sharing limits for prescription medicines. Once you’ve reached $8,000 in out-of-pocket spending, you won’t have to pay Part D copays or coinsurance for the rest of the year.
In 2023, all adult vaccines recommended by the Centers for Disease Control and Prevention became available to Medicare beneficiaries at no extra cost through Medicare Part D prescription drug coverage. This includes most vaccines now available to adults and in 2024 it includes the RSV vaccine.
Changes to the Part D donut hole
As many know, Medicare Part D plans include a coverage gap known as the Medicare donut hole. This means that between your initial coverage phase and catastrophic phase, you can expect to pay more for prescription drugs. For 2024, the donut hole starts when you and your Part D provider have spent $5,030, which is higher than last year’s amount of $4,660.
Then, once you reach your out-of-pocket maximum for covered medicines, you enter the catastrophic coverage phase, which for 2024, means you won’t have to pay out of pocket for covered drugs.
To get the most out of your benefits, make sure you stay up to date on how your benefits and costs are changing from year to year.