2024 Medicare Changes

Another new year, another fresh set of changes to the Medicare program. 2024 brings some changes to costs, benefits and enrollment and we break it all down for you below. 

Did Medicare get more expensive in 2024?

In certain areas, yes. Medicare Part A, Medicare Advantage, Medicare Part D and Medicare Supplement Insurance all have some cost increases for 2024.

2024 Medicare Part A cost increases

The Medicare Part A premium remains $0 for most beneficiaries. Most people get premium-free Part A because they (or other qualifying person, such as a current or former spouse) worked and paid Medicare taxes for at least 40 quarters (10 years).

Beneficiaries who didn’t pay enough Medicare taxes (and who don’t qualify for premium-free Part A based on a spouse’s work history) saw their premiums increase in 2023. Beneficiaries who have to pay a Part A premium will pay either $278 or $505 per month for Part A.

The Medicare Part A deductible also increased 2024. The new deductible is $1,632 per benefit period. A benefit period starts the day you are admitted to a hospital or skilled nursing facility as an inpatient and ends when you have gone 60 consecutive days without any inpatient care. The 2023 Part A deductible was $1,600 per benefit period. 

Medicare Part A copayments for extended stays in hospitals or skilled nursing facilities increased in 2023 as well. 

• Days 61-90 of an inpatient hospital stay now require copayments of $408 per day (up from $400 in 2023). 
• Lifetime reserve days used beyond day 91 cost $816 per day (up from $800 per day in 2023). 
• Stays at skilled nursing facilities cost $204 per day in 2024 for days 21-100, which is up from $200 per day in 2023.  

2024 Medicare Advantage (Part C) cost increases

Medicare Advantage plans are sold by private insurance companies, so the premiums, deductibles and other costs may vary from one plan to the next.

One area of Medicare Advantage coverage that increased in 2024 is the standard maximum out-of-pocket spending limit on in-network care plans are allowed to offer. The highest allowable limit increased from $8,300 in 2023 to $8,8500 for 2024. Most plans include a limit that is lower than the maximum allowed, however.

2024 Medicare Part D prescription drug plan cost increases

Medicare Part D plans are required by law to have an annual deductible of no more than $545 in 2024, which is up from the 2023 limit of $505. Many plans have deductibles that are lower than the limit, and some may have no deductible at all.

The limit at which a Part D plan member reaches catastrophic coverage is also increasing in 2024, going from $7,400 to $8,000. The catastrophic coverage limit represents the amount of spending on covered drugs that a beneficiary and their plan combine to pay for in a calendar year before the beneficiary receives near-complete Medicare drug coverage for the remainder of the year. 

2024 Medicare Supplement Insurance cost increases

Four Medicare Supplement Insurance (Medigap) plans increased in 2024. 

• The high-deductible version of Plan F and Plan G each have a deductible of $2,800 per year in 2024, which is up from $2,700 in 2023.
  
  
• The annual out-of-pocket limit for Plan L increased from $3,470 to $3,530 in 2024, while the limit for Plan K increased from $6,940 to $7,060. 

Is Medicare expanding any coverage in 2024? 

Medicare is expanding its coverage in three areas in 2023. 

• Legislation that was part of the Inflation Reduction Act set a cost limit of $35 for a one-month supply of insulin and covered insulin-related products for Medicare beneficiaries.
  
  
• The Inflation Reduction Act also brings more free vaccines to beneficiaries with Medicare drug coverage. Previously, many vaccines such as those for shingles or Tdap (tetanus, diphtheria and pertussis) required patients to pay some Part B copays or coinsurance. Now those vaccines will be given for free.
  
  
• Coverage of immunosuppressive drugs that are used following a kidney transplant were previously only covered for 36 months but will now be covered for the rest of the patient’s life, even if the person becomes ineligible for all other Medicare coverage.  

Are there any changes to Medicare enrollment in 2024?

Medicare Special Enrollment Periods changed in 2023 for those who missed their Initial Enrollment Period, or the time at which they first become eligible to sign up for Medicare. 

Beginning in 2023, beneficiaries who miss their Initial Enrollment Period because of emergencies, natural disasters and other events may now qualify for a Special Enrollment Period to sign up for Medicare with no late enrollment penalties or coverage delays.

How can I know if there are changes to my Medicare plan for 2024?

If you’re enrolled in a Medicare Advantage or Medicare Part D plan, you will receive a letter in the mail each fall called an Annual Notice of Change. This letter details any changes being made to your plan for the upcoming year and gives you an opportunity to make changes to your coverage during the Annual Enrollment Period (AEP) if necessary.  

If you want to learn more about how a Medicare Supplement plan can help reduce your out-of-pocket Medicare costs, you can request a free plan comparison online or call to speak with a licensed insurance agent who can help you compare plans where you live and learn more about which plans could help save you money.