by Russell Noga | Updated September 5th, 2023
How Much Will Medicare Go Up in 2024
As the new year approaches, Medicare beneficiaries eagerly await the upcoming changes in their coverage. These adjustments are expected to bring new strategies to lower prescription drug costs, provide updates to the Medicare Advantage program, and reveal the impact of the Inflation Reduction Act on Medicare in 2024.
Are you prepared to navigate the upcoming changes and seize the opportunities they present? One question on everyone’s mind is, “How much will Medicare go up in 2024?”
Read on to discover the key updates and strategies that will help you make the most of your Medicare coverage in 2024.
- On October 12th, 2023, the Centers for Medicare & Medicaid Services (CMS) released that the new standard Monthly Medicare Part B premium will be $174.70, an increase of $9.80 from $164.90 in 2023
- The Medicare Part B deductible will rise to $240 in 2024.
- The Inflation Reduction Act offers potential reductions in out-of-pocket costs for beneficiaries through updated coverage options, a $2,000 annual limit for prescription drugs, and the removal of the coverage gap.
- The Medicare Advantage program will be enhanced with expanded benefits and new enrollment options that offer greater financial security with limited annual increases in premiums up to 6%.
Medicare Part B Premium 2024 Increase
The Medicare Part B standard monthly premiums for 2024 will be $174.70/month. This is driven by factors such as income distribution and average basic premium rates, which are influenced by the national average monthly bid. This increase will impact enrollees differently based on their income levels.
Is Medicare Part B going up in 2024?
Yes, the standard monthly Medicare Part B premiums will be increasing in 2024 to $174.70 per month, due to higher costs associated with new treatments like Alzheimer’s medication.
These higher costs are likely to be passed on to Medicare beneficiaries, resulting in an increase in their monthly premiums. This could be a significant financial burden for many seniors, who are already struggling to make ends meet.
It is important to note that the proposed increase was proposed and isn’t set in stone yet for 2024.
With these changes on the horizon, it’s crucial for those who depend on Medicare Part B for outpatient services to understand the factors influencing these premium increases.
Factors Influencing Premium Increases
Several factors contribute to the uncertainty in predicting premium increases for Medicare Part B, such as income distribution and average supplemental premium rates.
Freezing the Income-Related Premium (IRP) thresholds, for example, would result in an increase in premiums for those with income near the lowest IRP threshold. This would impact the federal government’s revenue from Medicare Part B premiums.
On the other hand, a rise in the Part B basic premium would affect enrollees with income not high enough to pay an IRP but too high to be eligible for subsidies from Medicaid. The increase in premium would impact access to Medicare benefits for every affected enrollee.
As such, understanding these factors, including the base beneficiary premium and insurance coverage, can help beneficiaries prepare for potential changes in their premiums.
Impact on Different Income Levels
Higher-income households will be slightly more affected by premium increases, while lower-income households will also experience a larger share of the impact.
The rise in premiums would constitute a larger proportion of income for lower-income households in comparison to higher-income households.
Thus, it is essential for Medicare beneficiaries to be aware of the potential financial implications of these premium increases and plan accordingly, especially since Medicare trustees projected potential changes in the future.
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Changes to Medicare Part D Coverage in 2024
In 2024, Medicare Part D coverage will undergo significant changes, with Part D plan sponsors adjusting to these new regulations. These adjustments include alterations to the catastrophic phase costs, with enrollees now responsible for 20% of total drug costs instead of 15%.
Additionally, there will be modifications to out-of-pocket spending for Medicare Part D. Understanding these changes will help Medicare beneficiaries navigate their Medicare prescription drug coverage in the coming year.
Catastrophic Phase Cost Changes
The catastrophic phase costs for Medicare Part D will change in 2024, with enrollees now paying 20% of total drug costs instead of 15%. As a result, enrollees will face greater out-of-pocket expenses for their prescription drugs.
This change highlights the importance of being aware of the financial implications of the various phases of Medicare Part D coverage and adjusting one’s budget accordingly.
Effects on Out-of-Pocket Spending
These changes in Medicare Part D coverage will affect out-of-pocket spending for enrollees, with varying impacts depending on individual circumstances and medication needs.
Factors such as the type of plan selected, the cost of medications, and the extent of coverage provided by the plan will determine out-of-pocket expenditures.
To reduce prescription drug costs in 2024, enrollees can consider utilizing generic medications, exploring manufacturer assistance programs, and researching additional financial assistance options.
Inflation Reduction Act's Impact on Medicare in 2024
The Inflation Reduction Act will have significant implications for Medicare in 2024. Key provisions in the act will affect Medicare coverage and beneficiaries, leading to changes in Medicare Part D benefits, such as the introduction of an out-of-pocket spending cap and the elimination of the coverage gap.
Understanding the potential impact of this legislation on Medicare coverage can help beneficiaries prepare for the changes ahead.
Key Provisions Affecting Medicare
The Inflation Reduction Act includes provisions that will change Medicare Part D benefits. These changes include the implementation of an out-of-pocket spending cap and the discontinuation of the coverage gap.
In 2025, the annual limit for prescription drug costs in Part D will be $2,000. These provisions are aimed at enhancing drug affordability and reducing out-of-pocket costs for Medicare beneficiaries.
Implications for Beneficiaries
The changes brought about by the Inflation Reduction Act will have various implications for Medicare beneficiaries. These include potential reductions in out-of-pocket costs and adjustments to cost-sharing structures.
Beneficiaries can take advantage of these changes by researching the updated coverage options and strategizing to lower prescription drug costs in 2024, such as utilizing generic medications and manufacturer assistance programs.
Medicare Supplement Plans in 2024
Medigap insurance premiums do not change by year, as each company has its own rates. Monthly premiums typically change based on the anniversary of your plan.
Also, the coverage of Medicare Supplement Plans in 2024 will not change.
To compare rates and see if you can save money on your Medigap insurance plan, use our FREE quote engine on this website by entering your zip code at the top of this page.
Medicare Advantage Program Updates in 2024
Updates to the Medicare Advantage program in 2024 will bring changes to:
- benefit enhancements,
- and new enrollment options.
These updates will offer more comprehensive and personalized coverage for Medicare beneficiaries, allowing them to choose plans that best suit their needs and preferences.
Premiums may be lower or higher depending on the plan chosen, and benefit enhancements may include additional benefits.
Premium Changes and Caps
Premium increases for Medicare Advantage plans will be capped at 6% annually from 2024 to 2030, providing some stability for enrollees. This cap ensures that premiums will not exceed 6% annually during this period, allowing beneficiaries to better plan their budgets and anticipate future healthcare expenses.
Benefit enhancements for the Medicare Advantage program in 2024 may include expanded coverage for services such as dental, vision, and hearing, as well as improved access to telehealth services.
These enhancements will provide enrollees with more comprehensive coverage options, enabling them to receive the care they need without incurring excessive out-of-pocket costs.
Additionally, these improvements may also positively impact those seeking Medicaid services.
Enrollment Options and Plan Selection
Enrollees will have more options for plan selection and enrollment in 2024, with the potential for smoother transitions between plans and more personalized coverage.
Understanding the available enrollment options and plan details will be crucial for beneficiaries to make informed decisions about their Medicare Advantage coverage in the coming year.
With the new options, enrollees will be able to choose plans that best fit their needs.
Strategies to Lower Prescription Drug Costs in 2024
Lowering prescription drug costs will be a priority for many Medicare beneficiaries in 2024.
To achieve this, several strategies can be employed, such as:
- utilizing generic medications,
- exploring manufacturer assistance programs,
- and researching additional financial assistance options.
By adopting these strategies, beneficiaries can effectively manage their healthcare expenses and make the most of their Medicare coverage.
Utilizing Generic Medications
Switching to generic medications can help reduce out-of-pocket costs for Medicare beneficiaries, as they are typically less expensive than brand-name drugs. Generic medications are identical to brand-name drugs in terms of dosage, safety, strength, quality, performance, and intended use.
By consulting with their healthcare providers and pharmacists, beneficiaries can identify suitable generic alternatives to their current medications and potentially save on prescription drug costs.
Exploring Manufacturer Assistance Programs
Manufacturer assistance programs may provide financial support for eligible individuals, although these programs are generally not available to those with federal insurance, including Medicare, as they are regulated by the federal government.
Nevertheless, it’s worth exploring these programs to determine if any assistance is available to help offset prescription drug costs.
Researching Additional Financial Assistance
Additional financial assistance options, such as the PAN Foundation grants, can help cover prescription drug costs for eligible individuals.
As the PAN Foundation plans to expand assistance in new disease areas, beneficiaries should stay informed about these opportunities to help manage their prescription drug expenses.
In conclusion, 2024 will bring a variety of changes and opportunities for Medicare beneficiaries. By understanding the premium increases, coverage updates, and strategies to lower prescription drug costs, enrollees can better manage their healthcare expenses and make the most of their Medicare coverage.
Stay informed, explore your options, and seize the opportunities presented by these changes to ensure a healthier and more financially stable future.
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Frequently Asked Questions
Will Medicare premiums increase in 2024?
The projected average total Part D beneficiary premium is expected to decrease by 1.8% in 2024, whereas Medicare Part B premiums could increase by about $15 a month.
The Senior Citizens League also predicts that the 2024 Medicare Advantage (MA) premiums and deductibles will be released in September.
How much is the 2023 Medicare cost of living increase?
Starting in January 2023, Medicare recipients will receive an 8.7% increase in benefits resulting in a $146 per month increase.
What will the Medicare donut hole be in 2023?
In 2023, you will enter the Medicare donut hole when your total drug costs reach $4,660. During this time, you are responsible for a percentage of the cost of your drugs.
This means that you will have to pay more out of pocket for your medications. It is important to understand how the donut hole works and how to best manage your drug costs during this period.
What changes can I expect in Medicare Part D coverage in 2024?
In 2024, Medicare Part D coverage will be adjusted, including changes to the costs of the catastrophic phase and out-of-pocket spending.
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Russell Noga is the CEO and Medicare editor of Medisupps.com. His 15 years of experience in the Medicare insurance market includes being a licensed Medicare insurance broker in all 50 states. He is frequently featured as a featured as a keynote Medicare event speaker, has authored hundreds of Medicare content pages, and hosts the very popular Medisupps.com Medicare Youtube channel. His expertise includes Medicare, Medigap insurance, Medicare Advantage plans, and Medicare Part D.