Get ahead of rising Medicare costs: Prepare for 2024 now!
For 2024, there will be an increase in Medicare premiums. Specifically, the cost of Medicare Part A Deductible, Medicare Part B, and Part D premiums has risen. This update aims to enhance the reader’s experience with accurate information.
Medicare’s open enrollment period is currently underway, running until December 7th. This is your opportunity to assess and review your Medicare plan for the upcoming year. It’s important to note that premium amounts have been announced and they are slightly higher than they were in 2023. While this may not come as a surprise after last year’s unique decrease in premiums and deductibles, it is still essential to stay informed and understand your out-of-pocket costs to make the most of your plan for the upcoming year.
The out-of-pocket costs you will incur can vary depending on your income and the type of plan you choose. To help you anticipate what to expect in 2024, let’s break down some key changes:
Part A deductible: The deductible for hospital admissions will increase by $32, reaching $1,632 in 2024. This deductible covers your portion of the costs during the first 60 days of Medicare-covered inpatient hospital care within a benefit period. It’s important to note that there is no limit to the number of benefit periods you can experience per year, so you may have to pay this deductible multiple times.
For hospital stays exceeding 60 days, the coinsurance amount will increase to $408 per day for days 61 to 90, and $816 for subsequent days. If you require extended care services in a skilled nursing facility, the daily coinsurance for days 21 to 100 will rise to $204.
Moving on to Medicare Part B, starting in 2024, the standard monthly premium will be $174.70, which is an increase of $9.80 from 2023. The annual deductible for all Medicare Part B beneficiaries will amount to $240, which is $14 more than in 2023. It’s worth mentioning that if you are a high earner, surcharges based on adjusted gross income from two years earlier will apply. The monthly premium for Part B can range from $244.60 to $594.00 for individuals with an AGI over $103,000 ($206,000 for joint filers). For those with an AGI over $97,000 ($194,000 for joint filers), the premium will be between $230.80 to $560.50.
Medicare Part B covers various services such as doctor visits, outpatient care, home health care, durable medical equipment, and preventive services. Once you have met your deductible, you typically pay 20% of the Medicare-approved amount for Part B covered services. This amount is referred to as your coinsurance. It is important to remember that there is no annual limit on out-of-pocket expenses unless you have supplementary coverage, like Medicare supplement insurance (Medigap). Medigap can help cover the remaining 20% coinsurance and other out-of-pocket costs.
While evaluating your Medicare plan, it’s also crucial to stay updated on Medicare Part D, which covers prescription drug expenses. Ensure that you review your options during the open enrollment period to guarantee you have the most suitable coverage for your prescription needs.
Take the time to carefully assess and make any necessary adjustments to your Medicare plan. Understanding the changes in premiums and deductibles will greatly assist you in planning your healthcare expenses for the upcoming year. Don’t miss this opportunity to familiarize yourself with the latest information and make informed decisions that will benefit your health and financial well-being.
It is important to remember that Medicare coverage costs are increasing and that there are implications for your wallet. From an increase in the Medicare Part B premium, to rising deductibles, to changes in the Medicare Advantage Plans cost sharing, these increases can affect your costs when it comes to healthcare services. It is critical for those on Medicare, or joining soon, to understand the rise in costs so they can make informed decisions when choosing coverage levels. Consider carefully what you are willing to pay out of pocket versus having insurance cover when looking into options for how best to plan for unexpected health expenses. To ensure you have adequate coverage and save money where you can, we recommend scheduling a free Medicare coverage review with an expert today.