Every year, Medicare announces a list of new updates to the insurance program. The updates might seem trivial and minor, but they can significantly impact enrollees’ finances and coverage.
Enrollees need to keep a close eye on the annual Medicare updates.
Historically, Medicare changes usually expand the program, but changes also involve the amount you pay in premiums, deductibles, and coinsurance – some go up, some go down.
So, what are the Medicare changes in 2024?
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Medicare Part A Changes 2024
Medicare Part A is free coverage, often referred to as ‘hospital insurance. The plan provides coverage for inpatient care during hospital admittance, skilled nursing facilities, and home health care in specific scenarios.
When an individual turns 65, Medicare Part A eligibility is automatic. No premium is paid unless they have less than 40 quarters – equal to about ten years – of work history (1% of enrollees).
Although most Americans do not pay a premium for Part A, out-of-pocket costs must be paid when care is needed.
Part A Premiums in 2024
The Part A premium sees a slight change yearly for those who do not have 40 quarters of work history. As usual, the premium will depend on how long they or their spouse has worked and paid Medicare taxes.
Currently, the Part A premium for individuals between 30 and 40 quarters of work history pays $278 per month; for those with less than 30 quarters of work history, the premium is $505 per month. (source)
Part A Deductible in 2024
Part A deductible applies to each benefit period and can be necessary more than once per year. The deductible generally increases each year. As reported by the CMS, in 2024, the inpatient hospital deductible amount for Medicare Part A that beneficiaries pay if admitted will be $1,632 in 2024, an increase of $32 from 2023. This increase applies to all enrollees, although many may have supplemental coverage that pays for the cost.
Part A Coinsurance in 2024
Part A deductible only covers the first 60 inpatient days. Patients will incur a daily coinsurance charge if additional inpatient coverage is required. The current costs as reported by the CMS are as follows:
| Part A Deductible and Coinsurance Amounts for Calendar Years 2023 and 2024
by Type of Cost Sharing |
||
| 2023 | 2024 | |
| Inpatient hospital deductible | $1,600 | $1,632 |
| Daily coinsurance for 61st-90th Day | $400 | $408 |
| Daily coinsurance for lifetime reserve days | $800 | $816 |
| Skilled Nursing Facility coinsurance | $200 | $204 |
Medicare Part B Changes for 2024
Unlike Medicare Part A, Medicare Part B requires a monthly premium – an amount that is automatically deducted from an individual’s benefit payment. In addition, Part B covers outpatient hospital services (X-rays, diagnostic tests, medical supplies), physician fees, certain home health services, and other medical services not covered by Part A.
In 2023, the standard premium decreased to $164.90 a month, a decline of about 3% from 2022. This saved beneficiaries roughly $62 in the past year. In 2024, the standard monthly premium will be $174.70, an increase of $9.80.
The annual deductible will also increase slightly to $240, $14 higher than the annual deductible in 2023.
A major change we saw in 2023 was that kidney transplant recipients would be eligible to keep limited Part B coverage for life to cover immunosuppressive drugs, with full Part B ending 36 months post-transplant. For 2024, the standard immunosuppressive drug premium is $103.00.
Part B Premiums in 2024
The standard Part B premium sees a natural change every January. The increase or decrease is often in accordance with the Social Security cost of living adjustment.
According to the CMS, the standard monthly premium for Medicare Part B enrollees will be $174.70 for 2024.
| Full Part B Coverage | |||
| Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Income-Related Monthly Adjustment Amount | Total Monthly
Premium Amount |
| Less than or equal to $103,000 | Less than or equal to $206,000 | $0.00 | $174.70 |
| Greater than $103,000 and less than or equal to $129,000 | Greater than $206,000 and less than or equal to $258,000 | $69.90 | $244.60 |
| Greater than $129,000 and less than or equal to $161,000 | Greater than $258,000 and less than or equal to $322,000 | $174.70 | $349.40 |
| Greater than $161,000 and less than or equal to $193,000 | Greater than $322,000 and less than or equal to $386,000 | $279.50 | $454.20 |
| Greater than $193,000 and less than $500,000 | Greater than $386,000 and less than $750,000 | $384.30 | $559.00 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $419.30 | $594.00 |
Part B Deductible in 2024
The annual deductible for all Medicare Part B beneficiaries is $240 in 2024, an increase of $14 from the annual deductible in 2023.
The rise in the standard premium and deductible for Part B in 2024 is primarily due to the predicted growth in healthcare costs. To a lesser extent, it is also related to the solution for the payment policy for drugs acquired through the 340B program for 2018-2022 under the Hospital Outpatient Prospective Payment System.
There’s no yearly limit on what you pay out-of-pocket. However, it’s worth noting that supplemental coverage is available to pay for Part B deductibles. This coverage includes Medicaid, employer-sponsored plans, and Medigap plans C and F.
Medicare Part D Changes 2024
Medicare Part D is a program introduced by the federal government to get Medicare beneficiaries prescription drug coverage. Part D plans are run by private insurance companies that follow the rules set by Medicare.
You should consider getting Medicare drug coverage even if you don’t currently take prescription drugs. You may need to pay a late enrollment penalty if you decide to purchase the plan after eligibility.
Part D Premiums & Changes in 2024
Naturally, Part D premiums vary from plan to plan as private insurers sell them. According to the CMS, “around two-thirds of beneficiaries pay premiums directly to the plan, while the remaining beneficiaries have their premiums deducted from their Social Security benefit checks.”
Regardless of how a beneficiary pays their Part D premium, the Part D income-related monthly adjustment amounts are either deducted from your Social Security benefit checks or paid directly to Medicare.
The 2024 Part D income-related monthly adjustment amounts for high-income beneficiaries are as follows:
| Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Income-related monthly adjustment amount |
| Less than or equal to $103,000 | Less than or equal to $206,000 | $0.00 |
| Greater than $103,000 and less than or equal to $129,000 | Greater than $206,000 and less than or equal to $258,000 | $12.90 |
| Greater than $129,000 and less than or equal to $161,000 | Greater than $258,000 and less than or equal to $322,000 | $33.30 |
| Greater than $161,000 and less than or equal to $193,000 | Greater than $322,000 and less than or equal to $386,000 | $53.80 |
| Greater than $193,000 and less than $500,000 | Greater than $386,000 and less than $750,000 | $74.20 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $81.00 |
And while not every coverage requires deductible payments, in 2024, the maximum it can be is $545. (source)
Combatting Misleading Marketing: New measures will curb misleading marketing practices for Medicare Advantage and Part D coverage. Ads that don’t specify a plan name or misuse the Medicare name, CMS logo, and federal products, including the Medicare card, will be banned. Plans are also mandated to ensure brokers and agents adhere to these regulations.
Streamlining Prior Authorization: CMS has laid out protections that ensure Medicare Advantage enrollees enjoy the same access to necessary care as those in Traditional Medicare. Key changes include simplifying prior authorization processes, ensuring that once granted, these authorizations last as long as medically required, and introducing stricter oversight of denials based on medical necessity.
Boosting Access to Behavioral Health Care: CMS underscores the importance of behavioral health in overall patient care. Enhancements involve bolstering the behavioral health network in Medicare Advantage by adding clinical psychologists and licensed clinical social workers to reviewed specialties. Moreover, new wait time standards and clearer communication when providers leave networks are set. Most Medicare Advantage plans must also integrate behavioral health services into care coordination programs.
Advocating for Health Equity: CMS is instituting a health equity index within the Star Ratings program, incentivizing Medicare Advantage and Medicare Part D plans that excel in caring for underserved groups. Additionally, there are mandates for culturally sensitive care, ensuring better access to care for individuals with limited English proficiency through provisions of materials in various languages and formats. The revamped Star Ratings system will prioritize both patient-centric care and improved clinical outcomes.
Introduction of New Prescription Drug Law: Effective January 1, 2024, CMS will implement a pivotal component of the Inflation Reduction Act. This enactment will enhance access to affordable drug coverage for nearly 300,000 low-income individuals. Specifically, eligibility for the full low-income subsidy benefit, or “Extra Help,” will be expanded to those with incomes up to 150% of the federal poverty level. Consequently, qualified enrollees can expect no deductible, zero premiums (in a “benchmark” plan), and reduced copayments for certain medications under Medicare Part D.
(source)
Changes to Medicare Supplement Plans (Medigap) 2024
Over 29 million people had Medicare Advantage plans in 2022, and that number is expected to rise this year.
Medicare Advantage plans offer significant savings on prescription drugs and free benefits such as dental, hearing/vision etc. Because of this, many Americans are turning to these plans to cover the cost of their medical needs.
The number of Medicare beneficiaries who enroll in private health plans has increased by more than 15% over the past decade, and this trend will continue as long as it remains available. In 2004 just 13 percent were enrolled in Advantage plan coverage; however, by 2012, that figure had risen to 46%.
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