Ten Changes to Medicare in 2024

It’s November and the holidays are rushing toward us.  It’s also time for Medicare open enrollment, ending on December 7.  Like many transplant recipients, I have Medicare through Social Security Disability benefits.  Also, much like many transplant recipients, I have a lot of medical and drug expenses, so it is of great importance that I choose the right plan to help cover those costs.  As I dug through many websites to gather information, I realized people might want to have the benefit of what I learned without digging through a zillion websites.  This post will be the first in a series about Medicare benefits and upcoming changes.

The Basics

Medicare is a federal system of health insurance for people over 65 years of age and for certain younger people with disabilities. 

Medicare Part A covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care. You usually don’t pay a monthly premium for Part A if you or your spouse paid Medicare taxes while working for a certain amount of time. This is sometimes called “premium-free Part A.”

Medicare Part B covers certain doctors’ services, outpatient care, medical supplies, and preventive services. Most people will pay the standard Part B premium amount. The standard Part B premium amount in 2023 is $164.90 ($174.70 in 2024). If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you’ll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.

Medicare Part D (prescription drug coverage) helps cover the cost of prescription drugs (including many recommended shots or vaccines).  Medicare drug coverage helps pay for prescription drugs you need. To get Medicare drug coverage, you must join a Medicare-approved plan that offers drug coverage.  Medicare Part D drug coverage is not included in basic Medicare, and you will not have drug coverage unless you purchase a plan with drug coverage. I will discuss Medicare Part D more fully in future posts. If you want to be sure you receive notification of those posts, please make sure you subscribe to my blog.

For more information about A, B, and D, you can click on this link:  What’s Medicare? | Medicare

What about C?  Medicare Part C is commonly referred to as “Medicare Advantage” and I will address that in a later post. There are 10 standardized, letter named Medigap plans in most states (except Massachusetts, Minnesota and Wisconsin, which have their own standards). The plans differ in terms of what they cover, out-of-pocket limits and premiums. I’m not going to address those, but you can read about them here:  What Is Medigap Plan G? What You Need to Know – NerdWallet 

Here are some of the changes to Medicare in 2024

• The standard monthly premium for Medicare Part B enrollees will be $174.70, marking a $9.80 increase from the previous year.
• The annual deductible for all Medicare Part B beneficiaries will be $240, representing a $14 increase from 2023.
• The Part A inpatient hospital deductible will be $1,632, an increase of $32 from the previous year.
• Once a Medicare Part D prescription drug enrollee reaches the catastrophic level in 2024, they will no longer have out-of-pocket costs for covered drugs.
• More people will qualify for the full Medicare Part D Low-Income Subsidy (Extra Help) in 2024.
• The standard Medicare Part B premium will increase to $174.70/month in 2024.
• The Medicare Part B deductible will increase to $240 in 2024.
• Medicare Part A premiums are flat or decreasing slightly; Medicare Part A deductible and copays are increasing.
• The income brackets for high-income premium adjustments for Medicare Part B and Part D will start at $103,000.
• The maximum allowable out-of-pocket cap for Medicare Advantage plans will increase to $8,850 in 2024 (in addition to prescription costs).
• A standard Medicare Part D plan’s maximum deductible will increase and the threshold for entering the catastrophic coverage phase will also increase.

Stay tuned for future posts regarding Medicare Part D drug coverage and low-income assistance programs for those who have trouble paying for medications.