As we edge closer to 2024, the Centers for Medicare & Medicaid Services (CMS) has brought forth welcome news for Medicare Part D beneficiaries. The annual release outlining premium and bid information for the calendar year 2024 unveils notable changes aimed at enhancing the Part D program. Through adjustments established by the Inflation Reduction Act (IRA), beneficiaries can anticipate a year characterized by reduced premiums and out-of-pocket expenses.
Say Hello to Lower Part D Premiums
We start with great news. The average total monthly Part D premium is projected to dip by 1.8% in 2024, moving from $56.49 in 2023 to a more wallet-friendly $55.50. This figure is derived from summing the average basic and supplemental premiums, providing an accurate forecast of the premiums Part D participants will pay in 2024.
This drop in premium isn’t just a stroke of luck. It is an outcome of meticulous planning and policy improvement that takes two primary factors into consideration:
Premium Stabilization: From 2024, the IRA introduces a regulation to impede premium increments for Part D enrollees, capping the annual growth of the base beneficiary premium to a maximum of 6%. This intervention moderates the augmentation of the average basic premium, ensuring an overall lower average total premium.
Enhanced Basic Part D Benefits: Beneficiaries will witness a windfall of benefits in 2024, including a ceiling on yearly out-of-pocket expenses and limited cost-sharing on covered insulin products and adult vaccines. Additionally, a recent mandate by the CMS requires Part D plans to pass on the price discounts they obtain from pharmacies to the beneficiaries. This will reduce the amount you’ll pay for prescription drugs.
The fusion of a moderate increase in basic premiums and a substantial reduction in supplemental premiums creates a scenario where beneficiaries incur lesser total Part D premiums in 2024.
Reduced Out-of-Pocket Prescription Drug Costs
But the good news doesn’t stop at premiums. The law is bringing sweeping changes to significantly reduce your out-of-pocket prescription drug costs. A fresh report forecasts a 15% average reduction in these expenses for 2024, which is a massive saving of around $3.6 billion across all Part D beneficiaries.
Prior to the enactment of this law, over 5 million Medicare beneficiaries grappled with affording their prescribed medications, often leading them to skip necessary medicines due to prohibitive costs. Thankfully, the new provisions usher in a breath of fresh air, presenting several transformative amendments including:
- Elimination of cost-sharing during the catastrophic phase of coverage.
- Expansion of the Extra Help program, now encompassing beneficiaries earning between 135% and 150% of the federal poverty level. This is a move that facilitates lower premiums and affordable, fixed copayments for covered prescription drugs.
- An upper limit of $35 per month for each covered insulin product during the initial and coverage gap phases.
- No cost-sharing for adult vaccines recommended by the Advisory Committee on Immunization Practices.
This represents just the tip of the iceberg, with even more enhancements set to roll out from 2025. These include a $2,000 cap on out-of-pocket costs for Part D prescription drugs and the flexibility to distribute these costs evenly through monthly payments spread out over the entire year.
Conclusion
As we stand on the cusp of 2024, the anticipation builds for a year that promises more savings and enhanced coverage for Medicare Part D beneficiaries. The conscientious efforts to streamline premium costs and out-of-pocket expenses spotlight a committed move towards affordable healthcare for all.
Moreover, the incorporation of several essential changes such as limited cost-sharing on vital products and the abolishment of cost-sharing for adult vaccines are encouraging steps, fostering a healthcare environment where quality meets affordability.
These new amendments promise a smoother journey for Medicare Part D beneficiaries in 2024. The downward trend in both premiums and out-of-pocket expenses not only alleviate financial burdens but also ensure improved access to necessary medications and healthcare provisions.
Medicare Open Enrollment Period is swiftly approaching, starting on October 15 and ending on December 7. This is your golden opportunity to enroll in Medicare or modify your existing plan to better align with your healthcare needs. Whether you’re venturing into Medicare for the first time or contemplating a switch to a plan that better suits your requirements, it’s important to have a trusted adviser by your side. Call 866-MEDIGAP (866-633-4427) to speak with a Medicare expert today.
