What's New with Medicare Costs in 2024?

Every year, the Centers for Medicare and Medicaid Services (CMS) update what the cost sharing expenses are for people enrolled in Medicare. Costs may change from year to year and include:

1. Medicare Part A annual deductible and coinsurance for inpatient hospital stays, coinsurance for skilled nursing facilities, hospice, inpatient rehabilitation, and some home health care services.

2. Medicare Part B annual deductible covers physicians’ services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered under Medicare Part A.

3. Medicare Part B premium as determined according to provisions of the Social Security Act.

Medicare deductibles and premium

There have been increases in Medicare Part A and Part B for 2024. The increase is due to rising health care costs and spending.

Medicare Part B income-related adjusted amounts

In 2007, CMS initiated Part B monthly premium based on the beneficiary’s income. This income related adjustment affects approximately 8% of people enrolled in Medicare Part B.

This is something to keep in mind if you file individual or joint tax returns of more than $103,000 (individual) and $206,000 (joint tax return). People whose adjusted gross income exceeds these numbers are called high-income beneficiaries. There are tiers of premium adjustment for modified gross incomes greater or equal to $500,000/$750,000.

Medicare Part D is also an income related benefit

In 2011, CMS initiated Medicare Part D premium based on the person’s annual income. For those beneficiaries with high-income amounts exceeding $103,000/$206,000 for a person’s adjusted gross income, the premiums are higher.

Other changes in Medicare coverage in 2024

There are additional changes on behalf of the beneficiary for Medicare coverage in 2024:

• Prescription drugs - If you have Medicare drug coverage Part D, and the costs of drugs reaches a catastrophic coverage level, the coinsurance is waived.
• Lower costs on insulin - A limit of how much you pay for covered insulin products will not exceed $35 per month, and the Medicare deductible no longer applies.
• Vaccines recommended for adults are available at no cost.
• Telehealth services will continue through 2024.
• Managing and treating chronic pain – If you have been living with chronic pain for more than three months, Medicare covers monthly services to treat the pain subject to the Part B deductible.
• Better mental healthcare – Medicare will begin covering intensive outpatient program services provided by hospitals, community mental health centers, and other locations if you need mental health care.

Each year, an extensive Medicare handbook is released with in-depth information regarding Medicare coverages and services.

Medicare Supplement insurance is private insurance created to help with annual deductibles, coinsurance, and copays. Signing up for a Medicare Supplement insurance can help offset some of these costs.

Other Sources:

CMS, https://www.cms.gov/about-cms/contact/newsroom, accessed 2023

Medicare, https://www.medicare.gov/publications/10050-Medicare-and-You.pdf , accessed 2023.

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