Recently, the Centers for Medicare & Medicaid Services (CMS) unveiled the specifics for 2024 premiums, deductibles, and coinsurance amounts for Medicare Part A and Part B. They also announced changes to Part D income related adjustments and Low-Income Subsidy (LIS), which has been a game changer for many. The Low-Income Subsidy helps cover the Part D premium and can significantly lower prescription drug costs. There’s been a generous expansion, allowing more people to be eligible for the full LIS.

Additionally, there’s been enhancements to the Medicare Savings Programs (MSPs). These programs have been a lifeline for over 10 million people, generously covering Medicare premiums and often chipping in for other cost-sharing aspects. Now, the Department of Health and Human Services is making strides to ensure even more people can benefit from MSPs. They’re streamlining the enrollment process and this move is projected to make coverage more affordable for around 860,000 beneficiaries.

Medicare Part A in 2024

Medicare Part A provides coverage for hospital admissions, specialized nursing facilities, hospice care, inpatient rehab, and certain home health care services. If you’ve worked 40 quarters or more in a Medicare covered job, then you don’t have to pay a premium for Part A. It’s a perk from the Social Security Administration to make sure your golden years truly shine.

If you’re admitted to the hospital, there’s a small bump in the road you should be aware of. The inpatient hospital deductible has gone up slightly. In 2023, it was $1,600. In 2024, you’ll be looking at a $1,632 charge if you’re admitted to the hospital. It’s a tiny increase, just $32 more, but it’s always good to know these things upfront.

You might be wondering, “What about the daily costs after the initial hospital deductible?” If you find yourself in the hospital from the 61st to the 90th day, your daily coinsurance cost will be $408, a bit more than the $400 you’d pay in 2023.

Planning for an extended stay? Those lifetime reserve days will cost $816 per day in 2024, up from $800 the previous year. But if you require a skilled nursing facility, days 21 through 100 of this extended care will have a daily coinsurance of $204, a modest increase from $200 in 2023.

For those aged 65 and older who haven’t accumulated 40 quarters of coverage, or people with disabilities, there’s a monthly premium to get Medicare Part A. Some elderly individuals without insurance, along with some disabled people, may be eligible for a reduced premium of $278 per month in 2024 if they meet certain conditions.

But let’s say you’re uninsured with less than 30 quarters of coverage. Or perhaps you’re disabled and have exhausted your other entitlement options. In that case, you’ll be looking at a monthly premium of $505 in 2024, which is only down $1 from 2023.

Medicare Part B in 2024

Medicare Part B has you covered for a range of services including physician visits, outpatient care, home health services, and more. In 2024, your standard monthly premium will rise by $9.80 to $174.70 from the previous year’s $164.90. Plus, your annual deductible will increase by $14 to $240 compared to 2023’s $226. Also, if you’ve had full Medicare benefits that ended three years post a kidney transplant and lack certain insurance types, you can choose to continue your Part B coverage for immunosuppressive meds, with the 2024 premium of $103.

For high earners with full Part B coverage, here’s a breakdown of what you can expect in premiums based on your modified adjusted gross income. If you’re filing individual tax returns and your income is up to $103,000, you won’t have any adjustments and will pay a total premium of $174.70. But if you’re earning between $103,000 and $129,000, there’ll be a $69.90 adjustment, bumping your premium to $244.60. As your earnings increase, your monthly premium will too, ranging from $349.40 to a maximum of $594.00.

It’s important to note that if you’re filing joint tax returns with your partner, the income brackets adjust. Although the patterns are similar, those couples in the top bracket with incomes of $750,000 or more will pay a premium of $594.00.

For high-income beneficiaries focused solely on immunosuppressive drug coverage, the rates differ. For people earning up to $103,000, the premium is $103.00. If your earnings are between $103,000 and $161,000, the premium varies between $171.70 to $377.70. For those fortunate enough to make more than $193,000, the premiums can reach $480.70. Couples who file their taxes jointly should note that their thresholds are slightly different, but they can expect similar premium trends.

Are you married but choose to file your taxes separately from your spouse? It’s not uncommon. For those with full Part B coverage, incomes up to $103,000 come with a premium of $174.70. Earning between $103,000 and $397,000 means you’ll be looking at premiums ranging from $559.00 to $594.00. If you’re mainly interested in immunosuppressive drug coverage, the rates change somewhat. However, the trend is consistent, with the highest premium capping at $515.10 for those earning $397,000 and above.

Medicare Part D in 2024

Medicare Part D provides prescription drug coverage. Your Medicare Part D monthly premium has been income-based since 2011. Interestingly, only about 8% of those with Medicare Part D are affected by these adjustments. When you pay your Part D premium, the income-related monthly adjustment might be added depending on your earnings. Most beneficiaries have this adjustment taken directly from their Social Security benefits, while others pay it straight to the plan.

If you file individual tax returns and earn up to $103,000, there’s no extra adjustment on your premium. Those earning between $103,000 and $129,000 will have an extra $12.90 monthly, and if your income is between $129,000 and $161,000, it’s an added $33.30. Earn between $161,000 and $193,000? That’s $53.80 more each month. For incomes between $193,000 and $500,000, you’re looking at a $74.20 increase, and if you’re raking in over $500,000, it’s a $81.00 monthly boost.

Now, if you and your partner file your taxes jointly, here’s what you can expect to pay. A combined income up to $206,000 means no extra costs for you. Between $206,000 and $258,000, it’s an added $12.90. If you’re bringing in between $258,000 and $322,000, you’ll need to budget for an extra $33.30. Earnings between $322,000 and $386,000 result in a $53.80 bump, and for incomes ranging between $386,000 and $750,000, it’s $74.20. Power couples with a combined income over $750,000? That’s an $81.00 monthly increase.

Lastly, if you’re married but choose to file your taxes separately, here’s how it will affect you. An income up to $103,000 sees no adjustments. If your earnings are between $103,000 and $397,000, that’s an extra $74.20 each month. And if you make over $397,000? It’s a $81.00 monthly increase.

Conclusion

Medicare’s commitment to ensuring affordable healthcare for its beneficiaries remains unwavering. These updates, though they might involve some cost increments, are geared towards keeping the program sustainable and making sure it continues to deliver quality healthcare for all its enrollees. It’s essential to stay updated with these changes each year. If you have any questions or concerns, be sure to speak to a licensed agent to ensure you make the most of your Medicare benefits.

For more information about the 2024 Medicare updates, please speak with a Senior Healthcare Solutions Medicare expert today at 866-633-4427. We’ll be happy to assist you in understanding how these updates may impact your healthcare coverage and answer any questions you have. Whether you’re new to Medicare or looking to enhance your existing coverage, we’re here to help you every step of the way.