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.
In 2024, the standard Medicare Part B monthly premium will jump to $174.70, from $164.90.
This increase reflects growing health care costs.
The annual deductible will rise to $240, from $226.
The increases reflect increases in overall health care expenditures.
Medicare Part D Prescription Drug Coverage
The new year will bring major relief for clients with Medicare Part D coverage and high prescription drug bills: Those clients will no longer face out-of-pocket costs for covered prescription drugs after their spending for the year reaches the catastrophic coverage level.
In addition, the subsidy for low-income Medicare Part D enrollees is expanding. That should make life easier for any low-income clients who have Medicare coverage.
Medicare Advantage Plans
Average monthly Medicare Advantage plan premiums are increasing just a little in 2024, but the “star rating” quality ratings are different.
The average plan start rating fell to 4.04, from 4.14.
The typical quality level may really have shifted. Clients should think carefully about the star ratings when considering plan choices.
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Credit: CMS