The 2024 Medicare Landscape

The new year starts Monday, and new Medicare rules and parameters will take effect.

Here’s an example of how to answer a client question about what 2024 will mean for Medicare beneficiaries.

The Question

As we enter 2024, what should Medicare beneficiaries know about program updates?

The Answer

This year, Medicare beneficiaries will see changes in costs and changes in a major plan comparison tool.

Medicare Part A Changes

The Medicare Part A program covers inpatient hospitalization expenses.

The Medicare Part A deductible will increase to $1,632 in 2024, from $1,600 in 2023.

This change, albeit modest, could affect clients who go to the hospital.

Coinsurance costs and skilled nursing facility costs are also rising.

Coinsurance costs will rise to $408 per day for days 61 through 90 of hospitalization, up from $400 in 2024.

The coinsurance cost for skilled nursing facility care will increase to $204 for days 21 through 100, from $200.

Medicare Part A Premiums

A majority of Medicare beneficiaries do not pay Part A premiums.

For clients who have paid payroll taxes for 30 to 39 quarters, the premium will hold steady at $278 per month.

For clients who have paid payroll taxes for fewer than 30 quarters, the premium will fall to $505 per month, from $506 per month in 2023.

Medicare Part B Updates

Medicare Part B pays for outpatient hospital care and physicians’ services.