With Medicare Open Enrollment season starting on Oct. 15 and running through Dec. 7, now is a good time to go over all of the changes that are in store for plans going into 2024.
Some of the changes are good news for Medicare recipients, and may save you money, sometimes significantly, depending on your circumstances. Others are regular changes to the premiums you pay for Medicare Part B and D as well as out-of-pocket maximums for Part D plans. We provide this information so you can plan ahead.
Here’s what’s coming for 2024:
Cost savings
The Inflation Reduction Act, signed into law at the end of 2022, contains a number of Medicare reforms, including the following:
- Starting in 2023, two vaccines recommended by the Advisory Committee on Immunization Practices that are not covered under Medicare Part B, are available with no copays for Medicare Part D enrollees: Shingles, and tetanus and diphtheria.
- Insulin copays are capped at $35 a month.
Regular changes
Every year a number of benchmarks are updated to reflect inflation and medical costs. Here are the caps and minimums for 2024:
- The standard Part D deductible for 2024 is $545, a $40 increase from this year. The threshold for entering the Coverage Gap is an aggregate retail cost of $5,030, up $370 from 2023.
- In 2024, the Part B premium is projected to be around $175 to $180/month.
- The average 2024 Part D premium is projected to be $55.50/month by CMS (this is a national average and premiums vary from region to region).
- If the above Part D prediction is correct, the Late Enrolment Penalty will be 55 cents per month for each month a person could have had drug coverage but failed to sign up for Part D. This penalty is added to the plan’s monthly payments. To avoid this fate, you must enroll in a Part D plan when you first become eligible for Medicare.
Medicare Advantage developments
Advantage plan dental benefits continue to improve. Originally, dental benefits covered annual exams, routine cleanings and X-rays, as well as some minor comprehensive benefits such as fillings. Now some plans are including crowns, dentures and implants, while increasing their annual maximum benefit.
Advantage plans with health maintenance organization networks are increasing member access to providers by blending local networks into a national one. This enables an HMO member to go to network providers throughout the country.
The base monthly premium for Medicare Part B (for individuals who make no more than $97,000 or couples that make a maximum of $194,000), is expected to be $175 a month, up from the current $164.50.
If the above is correct, those in the next income bracket (individuals earning between $97,000 and $123,000 a year and couples making $194,000 to $246,000) would pay about $75 more per month (individual) and $150 more for couples.
Those on limited incomes
Medicare will offer full benefits to those with limited resources and incomes up to 150% of the federal poverty level ($21,870/year/individual in 2023). Full benefits will cover the majority of medication costs, as well as plan premiums.
Those married with a joint income under $30,000, may qualify for additional assistance. If you are in this category, contact your state Medicaid agency.
