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Toni Says: Medicare premiums and deductibles increase in 2024

The 2024 Medicare premiums and costs were released by CMS on Oct. 12, with an increase for both Medicare Parts A and B premiums and deductibles.
 
Every year the Medicare and You handbook is mailed out before Oct. 1 to all Medicare beneficiaries to help guide them through the Medicare Annual Enrollment Period (AEP) which ends Dec. 7. The handbook states that at the time of printing, the premiums and deductible amounts for Medicare Part A, Part B and Part D were not available.
Every year the Medicare and You handbook is mailed out before Oct. 1 to all Medicare beneficiaries to help guide them through the Medicare Annual Enrollment Period (AEP) which ends Dec. 7. The handbook states that at the time of printing, the premiums and deductible amounts for Medicare Part A, Part B and Part D were not available. [ ATU IMAGES | GETTY IMAGES ]
Published Oct. 24, 2023

Hello Toni:

I have recently enrolled in Medicare and received my 2024 Medicare and You handbook. I cannot find what the 2024 Medicare costs will be. Do you have any idea what they are? Thank you.

- Cindy from Conroe, Texas

Toni King
Toni King [ Courtesy of Toni King ]

Hello Cindy:

Every year the Medicare and You handbook is mailed out before Oct. 1 to all Medicare beneficiaries to help guide them through the Medicare Annual Enrollment Period (AEP) which ends Dec. 7. The handbook states that at the time of printing, the premiums and deductible amounts for Medicare Part A, Part B and Part D were not available.

The 2024 Medicare premiums and costs were released by CMS (Medicare) on Thursday, Oct. 12, with an increase for both Medicare Parts A and B premiums and deductibles. Below are the 2024 Medicare Part A and B premiums and deductibles, as well as information on the 2024 Part D changes that affect Medicare’s Part D prescription drug costs.

2024 Medicare Parts A and B Premiums and Costs:

  • Part A Costs (Inpatient Hospital): The new 2024 Part A inpatient hospital deductible will increase $32, from $1,600 in 2023 to $1,632 for 2024. The Part A deductible starts over every 60 days -- it is not a once-a-year deductible but six per year. Under Part A is Medicare Skilled Nursing, and the 2024 costs will be $0 co-pay per day for days 1-20 and $204 per day for days 21-100.
  • Part B Costs (Medical): The new 2024 Part B medical/doctor deductible will increase $14, from $226 deductible in 2023 to $240 beginning Jan. 1. After the deductible is met, Medicare pays 80% of the Medicare approved amount and the Medicare beneficiary pays the remaining 20% of the Medicare approved amount.
  • Part B Premium: The premium for 2024 will increase by $9.80, from $164.90 in 2023 to $174.70 beginning Jan. 1 for those making less than $103,000 as an individual or $206,000 as a couple. Beneficiaries who make more than that amount can find the 2024 Part B premium table on the cms.gov website.

2024 Medicare Part D costs:

  • Initial Deductible will increase by $40, from $505 in 2023 to $545 in 2024.
  • Initial Coverage Limit will increase by $370, from $4,660 in 2023 to $5,030 in 2024 when the “Donut Hole” begins.
  • Donut Hole (Coverage Gap) begins once you reach your Medicare Part D plan’s initial coverage limit of $5,030 in 2024 and ends when you spend a total of $8,000 out-of-pocket.
  • What is the Donut Hole Discount? Part D enrollees receive a 75% Donut Hole discount on the total cost of their brand name/generic drugs purchased while in the Donut Hole. The discount includes 70% paid by the brand name/generic drug manufacturer and 5% paid by the enrolled Medicare Part D plan. The Medicare beneficiary will be responsible for only 25% of the prescription drug cost until they reach the Donut Hole $8,000 exit point. To control Medicare Part D prescription drug costs, discuss with your medical provider which brand name drugs can be changed to generics.
  • Part D Catastrophic Coverage will be $0 out of pocket in 2024. When a Medicare recipient enters Catastrophic coverage, then Medicare will pick up all cost of the prescriptions whether brand name or generic, and those with a Medicare Part D plan pay $0.
  • The Medicare Part D cycle begins again with a new deductible and co-pays on Jan. 1 of every year.

Take your time during Medicare’s AEP to explore your options, because with Medicare, it’s what you don’t know that will hurt you!

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Toni King is an author and columnist on Medicare and health insurance issues. She has spent nearly 30 years as a top sales leader in the field. If you have a Medicare question, email info@tonisays.com or call 832-519-8664. Toni’s books are available at www.tonisays.com with a bundle discount for Toni Says readers.