What You’ll Pay for Medicare in 2024

As we approach the new year, you’re probably wondering about changes to healthcare costs. Medicare, the federal health insurance program for Americans aged 65 and older, has announced the premium rates and deductibles for 2024. Let’s take a closer look at what you can expect to pay for Medicare in 2024.

Medicare Part A

The Part A inpatient hospital deductible for 2024 will be $1,632. It’s important to note that this deductible resets every 60 days, meaning it applies six times a year.

In terms of skilled nursing care, the costs for 2024 will be as follows:

• Days 1-20: $0 copay per day
• Days 21-100: $204 per day

Medicare Part A provides coverage for hospital-related services, including inpatient hospital care, skilled nursing facility care, hospice care, home health care, and blood transfusions. It covers expenses such as nursing care, rehabilitation therapies, and medical supplies.

Medicare Part B

Starting January 1, 2024, the Part B medical/doctor deductible will be $240. Once you meet this deductible, Medicare will cover 80% of the Medicare-approved amount, and you’ll be responsible for the remaining 20%.

The standard Part B premium for 2024 will be $174.70. However, it’s worth noting that those with higher incomes may pay more than the standard rate. Individuals with an income above $103,000 or married couples with an income above $206,000 may have to pay an increased premium.

Medicare Part B provides coverage for various medical services and supplies. It includes doctor visits, outpatient care, preventive services, durable medical equipment, laboratory tests, and some home health services. Part B also covers certain medications administered in a clinical setting, such as chemotherapy drugs.

Medicare Part D

For Medicare Part D prescription drug coverage, there are a few changes to be aware of in 2024:

1. Initial Deductible: The initial deductible will increase from $505 in 2023 to $545 in 2024.
2. Initial Coverage Limit: The initial coverage limit will increase from $4,660 in 2023 to $5,030 in 2024. Once you reach this limit, you’ll enter the “Donut Hole” coverage gap.
3. Donut Hole (Coverage Gap): The Donut Hole begins when you reach the initial coverage limit of $5,030 and ends when you’ve spent a total of $8,000 out-of-pocket. During this phase, Part D enrollees receive a 75% discount on the cost of brand name and generic drugs, with the discount being shared between the drug manufacturer and the Part D plan.
4. Catastrophic Coverage: Once you reach the $8,000 out-of-pocket threshold, you’ll enter Catastrophic Coverage. At this point, Medicare will cover all costs of prescriptions, and those with a Medicare Part D plan pay $0.

When to Enroll in Medicare

If you’re turning 65 and eligible for Medicare, you have a 7-month Initial Enrollment Period (IEP) to sign up. This gives you ample time to enroll, starting 3 months before your 65th birthday month, including your birthday month itself, and extending for 3 months after. We highly recommend enrolling during this period to avoid any late enrollment penalties.

Medicare Annual Enrollment Period

This year’s Medicare Annual Enrollment period began on Sunday, October 15, and will end on Thursday, December 7. Plans selected during this period will have an effective date of January 1. It is an opportunity for those with Medicare to make changes to their prescription drug plans or health plans for coverage in the upcoming year.

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