Last Updated on October 20, 2023 by SPN Editor
The 2024 Medicare updates are set to impact millions of beneficiaries across the United States. On October 12, 2023, the Centers for Medicare & Medicaid Services (CMS) unveiled the highly anticipated 2024 premiums, deductibles, and coinsurance figures for 2024 Medicare Part A and Part B programs, along with the income-related monthly adjustment amounts for 2024 Medicare Part D. These numbers matter greatly for those of us who rely on Medicare to access essential healthcare services.
Expanding Access for a Healthier Future
One of the most notable developments is the effort to expand access to Medicare Savings Programs (MSPs). These programs are lifelines for over 10 million Americans, helping them manage the costs associated with Medicare premiums and, in many cases, additional expenses.
The Department of Health and Human Services (HHS), in collaboration with CMS, recently finalized a rule that aims to simplify the enrollment process for MSPs. This means more affordable coverage for an estimated 860,000 individuals. It’s a step towards improving healthcare accessibility and affordability for countless beneficiaries.
The Part D low-income subsidy (LIS) continues to play a pivotal role in helping beneficiaries manage their healthcare costs. It assists in paying for the Part D premium and reduces the financial burden of prescription drugs.
What’s more, the Inflation Reduction Act has recently widened the eligibility criteria for full LIS, making it accessible to even more beneficiaries. These developments underscore the commitment to making healthcare more attainable for everyone.
2024 Medicare Part A: Premiums and Deductibles
Medicare Part A provides vital coverage, including inpatient hospital care, skilled nursing facilities, hospice care, inpatient rehabilitation, and some home health services.
In 2024, the deductible for Medicare Part A, which beneficiaries pay when admitted to a hospital, will be $1,632. This marks an increase of $32 compared to the 2023 deductible of $1,600. The 2024 Medicare Part A deductible covers the portion of costs that beneficiaries are responsible for during the first 60 days of inpatient hospital care covered by Medicare within a benefit period.
For 2024, beneficiaries will be subject to a coinsurance fee of $408 per day for days 61 to 90 of a hospital stay, an increase from the 2023 fee of $400. Additionally, the coinsurance for lifetime reserve days will amount to $816 per day in 2024, up from $800 in 2023.
For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services within a benefit period will be $204.00 in 2024, compared to the 2023 fee of $200.00.
| Type of Cost Sharing | 2023 | 2024 |
|---|---|---|
| Inpatient hospital deductible | $1,600 | $1,632 |
| Daily hospital coinsurance for 61st-90th day | $400 | $408 |
| Daily hospital coinsurance for lifetime reserve days | $800 | $816 |
| Skilled nursing facility daily coinsurance (days 21-100) | $200.00 | $204.00 |
Enrollees who are 65 years and older, have less than 40 quarters of coverage, or have certain disabilities, have the choice to voluntarily enroll in Medicare Part A by paying a monthly premium. In 2024, the reduced monthly premium rate, available to those who have at least 30 quarters of coverage or were married to someone meeting this criterion, will remain at $278, the same as in 2023.
On the other hand, uninsured individuals of age with fewer than 30 quarters of coverage, and certain persons with disabilities who have used up other entitlements, will be required to pay the full premium, which is $505 per month in 2024. This amount represents a $1 decrease from the 2023 premium.
2024 Medicare Part B: Premiums and Deductibles
Medicare Part B is a critical component of our healthcare coverage. It encompasses physician services, outpatient hospital services, certain home health services, durable medical equipment, and various other medical and health services not covered by 2024 Medicare Part A.
The standard monthly premium for 2024 Medicare Part B enrollees in 2024 will be $174.70. For many of us, this represents an increase of $9.80 from the previous year’s premium of $164.90. At first glance, this increase might raise eyebrows.
| Type of Cost Sharing | 2023 | 2024 |
|---|---|---|
| Inpatient hospital deductible | $1,600 | $1,632 |
| Daily hospital coinsurance for 61st-90th day | $400 | $408 |
| Daily hospital coinsurance for lifetime reserve days | $800 | $816 |
| Skilled nursing facility daily coinsurance (days 21-100) | $200.00 | $204.00 |
It’s essential to understand that these adjustments are primarily influenced by projected increases in healthcare spending. Additionally, changes related to the 340B-acquired drug payment policy from 2018-2022 under the Hospital Outpatient Prospective Payment System also contribute to these shifts.
A significant change that caught my attention is the provision for individuals who’ve had full Medicare coverage terminate 36 months after a kidney transplant and lack certain other insurance options.
In such cases, it’s possible to continue 2024 Medicare Part B coverage for immunosuppressive drugs by paying a premium. For the year 2024, the standard immunosuppressive drug premium is set at $103.00.
2024 Medicare Part B Income-Related Monthly Adjustment Amounts
Income-related monthly adjustment amounts have been a noteworthy factor since 2007. Approximately 8 percent of us beneficiaries with Medicare Part B are impacted by these adjustments. The precise impact on premiums and costs depends on our income levels.
This table provides a clear overview of 2024 Medicare B coverage, including modified adjusted gross income (MAGI) thresholds and the associated income-related monthly adjustment amounts and total monthly premium amounts for beneficiaries based on their filing status.
The table below displays the 2024 Medicare Part B total premiums for high-income beneficiaries with full Part B coverage.
| Beneficiary Filing Status Individual Tax Return | Modified Adjusted Gross Income (MAGI) Joint Tax Return | Income-Related Monthly Adjustment Amount | Total Monthly Premium Amount |
|---|---|---|---|
| Less than or equal to $103,000 | Less than or equal to $206,000 | $0.00 | $174.70 |
| Greater than $103,000 and less than or equal to $129,000 | Greater than $206,000 and less than or equal to $258,000 | $69.90 | $244.60 |
| Greater than $129,000 and less than or equal to $161,000 | Greater than $258,000 and less than or equal to $322,000 | $174.70 | $349.40 |
| Greater than $161,000 and less than or equal to $193,000 | Greater than $322,000 and less than or equal to $386,000 | $279.50 | $454.20 |
| Greater than $193,000 and less than $500,000 | Greater than $386,000 and less than $750,000 | $384.30 | $559.00 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $419.30 | $594.00 |
The table below displays the 2024 Medicare Part B total premiums for high-income beneficiaries exclusively receiving immunosuppressive drug coverage:
Improved Part B Immunosuppressive Drug Coverage Table
| Beneficiary Income (Individual) | Beneficiary Income (Joint) | Income-Related Monthly Adjustment Amount | Total Monthly Premium Amount |
|---|---|---|---|
| Less than or equal to $103,000 | Less than or equal to $206,000 | $0.00 | $103.00 |
| Greater than $103,000 and less than or equal to $129,000 | Greater than $206,000 and less than or equal to $258,000 | $68.70 | $171.70 |
| Greater than $129,000 and less than or equal to $161,000 | Greater than $258,000 and less than or equal to $322,000 | $171.70 | $274.70 |
| Greater than $161,000 and less than or equal to $193,000 | Greater than $322,000 and less than or equal to $386,000 | $274.70 | $377.70 |
| Greater than $193,000 and less than $500,000 | Greater than $386,000 and less than $750,000 | $377.70 | $480.70 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $412.10 | $515.10 |
Beneficiaries who are married and lived with their spouses at any time during the year but filed separate tax returns from their spouses with modified adjusted gross income:
| Income-Related Monthly Adjustment Amount | Total Monthly Premium Amount |
|---|---|
| Less than or equal to $103,000 | $0.00 |
| Greater than $103,000 and less than $397,000 | $384.30 |
| Greater than or equal to $397,000 | $419.30 |
For high-income beneficiaries with immunosuppressive drug-only Part B coverage who are married, lived with their spouse at any time during the taxable year, and file separate tax returns, the premiums are as follows:
| Income-Related Monthly Adjustment Amount | Total Monthly Premium Amount |
|---|---|
| Less than or equal to $103,000 | $0.00 |
| Greater than $103,000 and less than $397,000 | $377.70 |
| Greater than or equal to $397,000 | $412.10 |
2024 Medicare Part D: Income-Related Monthly Adjustment Amounts
Since 2011, Medicare Part D premiums have been tied to our income levels. These income-related monthly adjustment amounts affect around 8 percent of Medicare Part D beneficiaries. The adjustments impact the Part D premium we pay, and the specific amount is based on our income.
The table below displays the 2024 Medicare Part D income-related monthly adjustment amounts for high-income beneficiaries:
| Beneficiaries who file individual tax returns with modified adjusted gross income | Beneficiaries who file joint tax returns with modified adjusted gross income | Income-Related Monthly Adjustment Amount |
|---|---|---|
| Less than or equal to $103,000 | Less than or equal to $206,000 | $0.00 |
| Greater than $103,000 and less than or equal to $129,000 | Greater than $206,000 and less than or equal to $258,000 | $12.90 |
| Greater than $129,000 and less than or equal to $161,000 | Greater than $258,000 and less than or equal to $322,000 | $33.30 |
| Greater than $161,000 and less than or equal to $193,000 | Greater than $322,000 and less than or equal to $386,000 | $53.80 |
| Greater than $193,000 and less than $500,000 | Greater than $386,000 and less than $750,000 | $74.20 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $81.00 |
Premiums for high-income beneficiaries who are married and resided with their spouse at any point during the tax year but chose to file separate returns are as stated below:
| Beneficiaries who are married and lived with their spouses at any time during the year, but file separate tax returns from their spouses with modified adjusted gross income | Income-Related Monthly Adjustment Amount |
|---|---|
| Less than or equal to $103,000 | $0.00 |
| Greater than $103,000 and less than $397,000 | $74.20 |
| Greater than or equal to $397,000 | $81.00 |
These changes are significant, as they directly affect the costs associated with our healthcare. It’s essential to stay informed about these updates to make the best decisions for our healthcare needs. The commitment to expanding access and controlling costs is evident, and it’s a welcome step in ensuring that healthcare remains affordable and accessible for beneficiaries
FAQs
1. What is the purpose of the Medicare Savings Programs (MSPs)?
The Medicare Savings Programs (MSPs) aim to provide assistance to over 10 million individuals by covering Medicare premiums and, in most cases, other cost-sharing expenses. These programs are designed to improve healthcare access and reduce costs for beneficiaries.
2. How has the Department of Health and Human Services (HHS) worked to make MSP coverage more affordable?
The HHS, through CMS, has implemented rules to streamline MSP enrollment, making it more accessible to an estimated 860,000 people. This initiative aims to reduce the financial burden on individuals seeking MSP coverage.
3. What does the Part D low-income subsidy (LIS) cover?
The Part D low-income subsidy (LIS) helps beneficiaries pay for the Part D premium and reduces the cost of prescription drugs. It provides valuable financial assistance to those with limited income.
4. What changes are expected in the Medicare Part B premium and deductible for 2024?
The standard monthly premium for 2024 Medicare Part B will be $174.70, representing an increase from the previous year. The annual deductible for all Medicare Part B beneficiaries will also see an increase.
5. What factors contribute to the increase in the Part B premium and deductible for 2024?
The 2024 Medicare Part B premium and deductible increases are mainly attributed to projected rises in healthcare spending. Additionally, there is a lesser contribution from the remedy for the 340B-acquired drug payment policy.
6. How has the Inflation Reduction Act impacted Medicare beneficiaries?
The Inflation Reduction Act has expanded the number of people eligible for the full low-income subsidy (LIS) benefit, further enhancing access to financial assistance for prescription drug costs.
7. What does 2024 Medicare Part A cover, and who is eligible for premium-free Part A coverage?
2024 Medicare Part A provides coverage for inpatient hospitals, skilled nursing facilities, hospice, inpatient rehabilitation, and some home health care services. Individuals with at least 40 quarters of Medicare-covered employment, determined by the Social Security Administration, are eligible for premium-free Part A coverage.
8. What changes are expected in the Medicare Part A deductible for 2024?
The2024 Medicare Part A deductible for inpatient hospital services will increase in 2024, resulting in an adjustment for beneficiaries. It’s essential to be aware of these changes for hospital-related expenses.
9. What can beneficiaries expect in terms of 2024 Medicare Part A inpatient hospital costs for 2024?
The daily coinsurance amounts for various hospitalization periods in a benefit period are set to change. Understanding these costs is crucial for beneficiaries planning hospital stays.
10. How does the Part D Income-Related Monthly Adjustment Amount (IRMAA) affect 2024 Medicare Part D beneficiaries?
The 2024 Medicare Part D IRMAA is based on a beneficiary’s income and impacts roughly 8 percent of people with Medicare Part D. It results in additional costs alongside the regular Part D premium. Understanding IRMAA is essential for managing Part D expenses effectively.
Naorem Mohen
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