Attention Medicare beneficiaries, there are some changes coming your way, medicare premium are expected to rise in 2024. Specifically, Medicare Part B premiums are expected to go up, while Medicare Part D costs are likely to decrease. Let’s break it down for you:
Every year, the Social Security Administration takes a look at the expenses associated with the Medicare program. Based on this assessment, they make adjustments to premiums and deductibles, following the guidelines laid out in the Social Security Act.
For those of you who are enrolled in both Medicare Parts B and D, here’s a sneak peek at the potential changes in your healthcare expenses. And, if you receive Social Security benefits, we’ll also discuss the expected increase in COLA (Cost of Living Adjustment) for the upcoming year.
Medicare Part B Premiums Rising in 2024
In 2024, you might notice your Medicare Part B premiums going up. This is due to the introduction of a new Alzheimer’s treatment called Leqembi, developed by Eisai and Biogen. The current monthly premium of $164.90 is projected to rise to $174.80, which means an approximate $10 increase per month. Leqembi is designed for individuals in the early stages of Alzheimer’s disease, and its introduction is a factor in this premium adjustment.
Also Read: Homeowners Beware: Insurers Drop Climate Risk Coverage!
Medicare Part D Premiums: A Slight Decrease in 2024
While the decrease in Medicare Part D premiums may not be substantial, it’s still good news for beneficiaries. According to the Centers for Medicare & Medicaid Services (CMS), the average total monthly Part D premium is expected to decrease from $56.49 in 2023 to $55.50 in 2024, a nearly $10 reduction each month. This decrease is thanks to measures introduced in the 2022 Inflation Reduction Act (IRA) that aim to limit premium increases. Additionally, improvements to the Basic Part D benefit, which include capping annual out-of-pocket expenses, reducing cost-sharing for covered insulin products, and eliminating cost-sharing for recommended adult vaccines in 2024, contribute to this positive change.
When to Expect Official Premium Announcements
The CMS is planning to release the official 2024 premiums, copayments, and other cost-sharing details for all Medicare Advantage (Part C) and Part D plans in mid to late September. During the same timeframe, they will also announce the Medicare Part A and Part B premiums and deductibles.
Remember, Medicare coverage includes:
- Medicare Part A: Covers inpatient hospital care, skilled nursing facility care, hospice services, inpatient rehabilitation, and certain home health care services.
- Medicare Part B: Includes coverage for physician services, outpatient hospital services, specific home health services, durable medical equipment, and certain medical services not covered by Part A.
- Medicare Part C (Medicare Advantage): Offers an alternative way to receive Medicare benefits.
- Medicare Part D: Helps with prescription drug costs.
Stay tuned for the official announcements and be prepared for potential adjustments in your Medicare costs in the coming year.
This article got inspiration from cnet.com
