Medicare Premiums and Deductibles Increase in 2024
Hello Toni:
I recently enrolled in Medicare and received my 2024 Medicare and You handbook and cannot find the 2024 Medicare costs will be? Do you have any idea what the new Medicare costs are? Thank You, Cindy from Conroe, TX
Hello Cindy:
Every year the Medicare and You handbook is mailed out before October 1 to all Medicare beneficiaries to help guide them through the Medicare Annual Enrollment (AEP) period which ends December 7. The handbook states that at the time of printing that the premiums, and deductible amounts for Medicare Part A, Part B and Part D were not available.
Guess what? The 2024 Medicare premiums and costs were released by CMS (Medicare) on Thursday, October 12, with an increase for both Medicare Parts A and B premiums and deductibles. Below are the 2024 Medicare Part A and B premiums and deductibles, as well as information on the 2024 Medicare Part D changes that affect Medicare’s Part D prescription drug costs.
2024 Medicare Parts A and B Premiums and Costs:
- Part A Costs (Inpatient Hospital): The new 2024 Part A inpatient hospital deductible will be an increase of $32 from $1,600 in 2023 to $1,632, for 2024. The Part A deductible starts over every 60 days. It is not a once-a-year deductible but 6-times a year. Under Part A is Medicare Skilled Nursing and the 2024 costs will be days 1-20 $0 copay per day and days 21- 100 will be $204 per day.
- Part B Costs (Medical): The new 2024 Part B medical/doctor deductible will increase by $14 from $226 deductible in 2023 to $240 beginning January 1, 2024. After the deductible is met, Medicare pays 80% of the Medicare approved amount and the Medicare beneficiary pays the remaining 20% of the Medicare approved amount.
- Part B Premium: New premium for 2024 has an increase of $9.80 from $164.90 in 2023 to $174.70 beginning January 1, 2024. Those with an income is higher than $103,000 as an individual or $206,000 as a married couple will pay more in Medicare Part B premium beginning January 1, 2024.
2024 Medicare Part D costs and co-pays are explained below:
- Initial Deductible: will increase by $40 from $505 in 2023 to $545 in 2024.
- Initial Coverage Limit: will increase by $370 from $4,660 in 2023 to $5,030 in 2024 when the “Donut Hole”
- Donut Hole (Coverage Gap): begins once you reach your Medicare Part D plan’s initial coverage limit of $5,030 in 2024 and ends when you spend a total of $8,000 out-of-pocket.
- What is the Donut Hole Discount?: Part D enrollees receive a 75% Donut Hole discount on the total cost of their brand name/generic drugs purchased while in the Donut Hole. The discount includes 70% paid by the brand name/generic drug manufacturer and 5% paid by the enrolled Medicare Part D plan. The Medicare beneficiary will be responsible for only 25% of the prescription drug cost until they reach the Donut Hole $8,000 exit point is reached. To control Medicare Part D prescription drug costs, discuss with your medical provider regarding which brand name drugs can be changed to generics.
- Catastrophic Coverage $0 out of pocket begins 2024 Medicare Part D: When a Medicare recipient enters Catastrophic coverage, then Medicare will pick up all cost of the prescriptions whether brand name or generic and those with a Medicare Part D plan pay $0.
- The Medicare Part D cycle begins again with a new deductible and co-pays on January 1 of every year.
Take your time during Medicare’s AEP to explore your options, because with Medicare, it’s what you DON’T know that will HURT YOU!
Call the Toni Says Medicare hotline at (832) 519-8664 or email info@tonisays.com for assistance. Toni’s books are available for purchase at www.tonisays.com with a special bundle discount for Toni Says® readers.
