Important Medicare Changes for 2024
Medicare changes occur every year. Medicare Advantage and prescription drug plans change, Original Medicare premiums and deductibles change, and government decisions can lead to changes across coverage types. Understanding the changes is an important part of maintaining your health and financial well-being in retirement because they can have big impacts on your Medicare coverage and costs.
Key changes to Medicare for 2024
The standard Part B premium is now $174.70.
The annual Part B deductible is now $240.
The Part A inpatient hospital deductible is now $1,632.
There is now a cap on the amount you’ll pay for Part D prescriptions in one year ($3,333 in 2024).
More people are eligible for full Extra Help benefits. The income threshold is now 150% of the federal poverty level (vs 135%).
Original Medicare changes
Part A and Part B costs change each year. Below we explain how specific Part A and B costs have changed from 2023 to 2024.
Medicare Part A cost changes
The Part A inpatient hospital deductible increased by $32—from $1,600 in 2023 to $1,632 in 2024.
Daily hospital coinsurance for days 61-90 increased by $8—from $400 in 2023 to $408 in 2024.
Daily hospital coinsurance for lifetime reserve days increased $16—from $800 in 2023 to $816 in 2024.
Daily coinsurance for days 21-100 in skilled nursing facilities increased $4—from $200 in 2023 to $204 in 2024.
Medicare Part B cost changes
The Part B standard monthly premium increased by $9.80—from $164.90 in 2023 to $174.70 in 2024. See below for additional premium increases for those subject to Income-Related Monthly Adjustment Amounts (IRMAA).
| Single Modified Annual Gross Income (2022) | Married/Filing Jointly Modified Annual Gross Income (2022) | Part B Premium IRMAA Surcharge |
|---|---|---|
| $103,000 or less | $206,000 or less | $0 |
| $103,001 - $129,000 | $206,001 - $258,000 | $69.90 |
| $129,001 - $161,000 | $258,001 - $322,000 | $174.70 |
| $161,001 - $193,000 | $322,001 - $386,000 | $279.50 |
| $193,001 - $499,999 | $386,001 - $749,999 | $384.30 |
| $500,000 or more | $750,000 or more | $419.30 |
The Part B annual deductible increased by $14—from $226 in 2023 to $240 in 2024.
Medicare Part D (prescription drug) plan changes
Medicare beneficiaries can get Part D coverage through a stand-alone Part D plan or through a Medicare Advantage plan that includes Part D coverage. Each year, these plans can change. Changes may affect the drugs that are covered, so it's important to confirm your prescriptions will continue to be covered by your plan in the following year. We recommend that, even if your drugs will continue to be covered, you take a look at other Part D coverage options to be sure you're getting the best prices for your prescriptions. Part D premiums can also change, which we'll explain more in the next section.
Medicare Part D cost changes
The premium for Part D coverage varies by plan, so you'll need to review your plan details to understand your Part D premium for 2024.
If you're subject to IRMAA, consult the chart below to understand what additional cost you'll owe for your Part D premium in 2024.
| Single Modified Annual Gross Income (2022) | Married/Filing Jointly Modified Annual Gross Income (2022) | Part D Premium IRMAA Surcharge |
|---|---|---|
| $103,000 or less | $206,000 or less | $0 |
| $103,001 - $129,000 | $206,001 - $258,000 | $12.90 |
| $129,001 - $161,000 | $258,001 - $322,000 | $33.30 |
| $161,001 - $193,000 | $322,001 - $386,000 | $53.80 |
| $193,001 - $499,999 | $386,001 - $749,999 | $74.20 |
| $500,000 or more | $750,000 or more | $81.00 |
In 2023, there was no limit to the amount you could owe out-of-pocket for your Part D medications, but that’s changing in 2024! In 2024, the maximum you will owe out-of–pocket for Part D drugs is $3,333. That number will go down to $2,000 in 2025.
Changes to the Part D Extra Help program
The Medicare Part D Extra Help program, which is also commonly called the Part D Low-Income Subsidy (LIS), helps older adults with low incomes and resources pay for their Part D premiums, deductible, and coinsurance. Starting in 2024, more Medicare beneficiaries will be eligible for full benefits from the Part D Extra Help program. The income threshold for full Extra Help benefits is increasing from 135% of the federal poverty level (FPL) to 150% FPL.
If you qualify for the Part D Extra Help program, you’ll pay no more than:
$4.50 for each covered, generic drug (up from $4.15 in 2023)
$11.20 for each covered, brand-name drug (up from $10.35 in 2023)
Medicare Advantage plan changes
Medicare Advantage plans change each year, and you should receive an Annual Notice of Change from your insurance company that outlines changes in your costs and coverage by the end of each September. Even if you like your plan and there are no changes that affect you, we still recommend that you use the Medicare Open Enrollment Period to review available plans because there may be one out there that can save you money or provide better benefits.
Each year, Medicare Advantage plan changes can include:
Changes to costs, like premiums and deductibles
Doctors leaving or joining the network
Changes to drug formularies (lists of covered drugs)
Adding, changing, or removing benefits
The addition of a new plan
The discontinuation of an existing plan
Medicare Advantage cost changes
According to CMS, the average monthly plan premium for Medicare Advantage enrollees is estimated to be $18.50 in 2024 (up from $17.86 in 2023). 66% of 2024 Medicare Advantage plans offer a $0 premium, and 19% offer some reduction to the Part B premium.
Medicare Advantage benefit changes
Medicare Advantage plans are popular, in part, because of the extra benefits that most provide. These benefits include dental, vision, and hearing care, flex benefits cards, transportation services, and fitness perks. Below, you’ll find two charts from KFF that show the differences in Medicare Advantage plan benefits offerings from 2023 to 2024.
Most notably, the percentage of plans that offer telehealth and transportation benefits has decreased. Not shown in the 2023 chart above is the percentage of plans that provide Part B rebates. This percentage of individual plans offering a Part B rebate has increased from 17% in 2023 to 19% in 2024.
The percentage of plans offering over-the-counter (OTC) benefits has decreased slightly, which aligns with our internal analysis, summarized below:
3,786 plans will continue to offer an OTC benefit in 2024.
2,681 plans will continue to not offer an OTC benefit in 2024.
250 plans have added an OTC benefit in 2024.
1,038 plans have removed the OTC benefit in 2024.
Most plans that kept the OTC benefit have either maintained or increased the amount offered through in 2024—only 821 have decreased the amount.
Questions about changes to your Medicare coverage?
If you have any questions about changes in the cost or coverage of your Medicare insurance, please don’t hesitate to reach out to us! Our licensed Medicare Advisors are here to help you understand and get the most value out of your Medicare.
Schedule a free consultation or call us at (855) 900-2427 to get support!