Big Medicare Changes Coming in 2024
What’s new for Medicare beneficiaries in 2024? A lot — including changes that expand care and make coverage more affordable.
For starters, Medicare’s more than 65 million enrollees will continue to feel the positive effects of 2022’s historic drug law aimed at curbing what older Americans pay for prescription medications. At the same time, beneficiaries will face higher premiums and deductibles for their medical care.
Also in 2024, the Centers for Medicare & Medicaid Services (CMS), the agency that runs Medicare, will continue its efforts to better coordinate the care that original Medicare enrollees receive.
Part B Premiums
Part B: The standard monthly Part B premium is rising by almost $10 — from $164.90 to $174.70. Most Medicare beneficiaries have this premium deducted from their Social Security benefits. The average monthly Social Security payment will increase by $59 a month in 2024, thanks to a 3.2 percent Social Security cost-of-living increase (COLA). That COLA will more than cover the added Part B monthly premium for most beneficiaries.
Prescription Drugs
Catastrophic cap: Under the new drug law, Medicare Part D plan members whose prescription costs are so high that they enter what’s called the catastrophic phase of coverage will not have any more out-of-pocket costs for the rest of the year once they’ve spent $8,000 on their medications. In 2025, an annual $2,000 out-of-pocket cap on Part D spending will take effect.
Extra Help: In 2024 the new drug law is expanding the eligibility for the Extra Help program, which assists people with limited incomes in affording their prescription drug costs, such as premiums and copays. The income threshold for Medicare enrollees to qualify for that program will be 150 percent of the federal poverty level ($21,870 for an individual in 2024), up from 135 percent of poverty.
“It’s really important for people to see if they could qualify for that program,” Seshamani says, “because we estimate there are about 3 million people out there who are eligible and not enrolled.” Medicare beneficiaries can apply for the Extra Help program through the Social Security Administration.
Extra Benefits
Catastrophic cap: Under the new drug law, Medicare Part D plan members whose prescription costs are so high that they enter what’s called the catastrophic phase of coverage will not have any more out-of-pocket costs for the rest of the year once they’ve spent $8,000 on their medications. In 2025, an annual $2,000 out-of-pocket cap on Part D spending will take effect.
Extra Help: In 2024 the new drug law is expanding the eligibility for the Extra Help program, which assists people with limited incomes in affording their prescription drug costs, such as premiums and copays. The income threshold for Medicare enrollees to qualify for that program will be 150 percent of the federal poverty level ($21,870 for an individual in 2024), up from 135 percent of poverty.
“It’s really important for people to see if they could qualify for that program,” Seshamani says, “because we estimate there are about 3 million people out there who are eligible and not enrolled.” Medicare beneficiaries can apply for the Extra Help program through the Social Security Administration.
The Medicare Advantage Open Enrollment Period is a valuable opportunity for individuals aged 65 and above to reassess their healthcare coverage and make necessary changes. Whether you decide to switch to a different Medicare Advantage Plan, return to Original Medicare, or join a Medicare drug plan, it's crucial to take advantage of this period to ensure you have the coverage that best meets your needs. At The Kirscht Insurance Agency, we are here to help you navigate the complexities of Medicare and find the right plan for you. Contact us today to explore your options and make the most of the upcoming open enrollment period.
