Medicare is undergoing changes in 2024, impacting both Original Medicare and Medicare Advantage beneficiaries. Staying informed about these annual developments is essential, as it can affect your healthcare costs.
Let’s explore the key changes coming to Medicare in 2024.
1. Medicare Part B premiums and deductibles
Starting January 1, 2024, most U.S. residents enrolled in Original Medicare (Part A and Part B) or a Medicare Advantage plan will pay a standard Part B monthly premium of $174.70, a $9.80 (5.9%) increase from 2023. The Part B annual deductible is also rising by $14 (6.2%) to $240.
Medicare beneficiaries with higher incomes will pay an income-related monthly adjustment amount (IRMAA) on their Part B premium, ranging from $69.90 to $419.30, up from $65.90 to $395.60 in 2023. Approximately 8% of Medicare beneficiaries are affected by IRMAA surcharges.
The income threshold for IRMAA is also increasing. For 2024, beneficiaries must pay an extra amount if their 2022 modified gross adjusted income reaches $103,000 (or $206,000 if filing jointly with a spouse), up from $97,000 (or $194,000 for joint filers) in 2023.
2. Medicare Part D premiums
The average monthly premium for a Medicare Part D prescription drug plan is projected to decrease to $55.50 in 2024, down from $56.49 in 2023. This reduction is attributed to the Inflation Reduction Act, signed by President Joe Biden in 2022.
Like Part B, about 8% of Part D beneficiaries may pay an IRMAA ranging from $12.90 to $81, depending on their income from two years ago.
3. Medicare Part D changes
Starting January 2024, Medicare Part D beneficiaries will reach the catastrophic coverage level when their out-of-pocket and manufacturer-subsidized drug costs total $8,000. At this point, they will no longer face a 5% copay, capping their maximum out-of-pocket drug costs at around $3,300 for 2024.
Additionally, more Medicare beneficiaries will qualify for income assistance in 2024, with eligibility extending to individuals with incomes up to 150% of the federal poverty level. The low-income subsidy program, known as Extra Help, covers the entire Part D annual deductible and monthly premium and lowers costs for both generic and brand-name drugs.
4. Expanded mental health services
Medicare is expanding access to behavioral health services in 2024, allowing mental health counselors and family therapists to enroll as Medicare providers. This change aims to provide better care for beneficiaries dealing with depression, anxiety, or substance use disorders.
Medicare will also extend coverage for intensive outpatient programs for mental health in 2024. Beneficiaries will be responsible for 20% of the Medicare-approved amount, along with their Part B deductible.
5. Coverage for chronic pain treatment
Starting in 2024, Medicare will cover monthly services for people with chronic pain, including pain assessment, medication management, and care planning and coordination. Beneficiaries will be responsible for their Part B deductible and coinsurance for these services.
6. Telehealth services
Until December 31, 2024, Medicare will cover telehealth services. After this date, most telehealth appointments will be covered only if conducted in a medical facility or office in a rural location. Some exceptions apply, such as behavioral health services and the treatment of certain disorders.
These changes aim to provide better healthcare access and affordability for Medicare beneficiaries in 2024. It’s essential to review your Medicare plan annually to ensure it meets your needs and budget.
To explore your Medicare coverage options, you can contact your local Senior Health Insurance Assistance Program (SHIP) or enroll via Medicare.gov with assistance from a family member or friend. Stay informed and make the most of your Medicare benefits in 2024.
