What you should know about Medicare changes this year

Part A changes | Part B changes | Part C and D changes | Year-over-year cost changes

Approximately 19% of Americans participate in Medicare, a federal government-funded health insurance program for those ages 65 and over (and some adults younger than 65 with disabilities). Despite so many people in the U.S. using Medicare for their healthcare coverage, it can still be tricky to understand. Only adding to the confusion is that some elements of the program change from year to year. 

Here, we discuss what’s changed with Medicare in 2024 and how they may affect your coverage this year. 

What are the 2024 Medicare changes?

In 2024, Medicare deductibles and certain premiums have risen slightly from the previous calendar year for those who do not receive free premiums. Although the Centers for Medicare and Medicaid Services (CMS) has robust resources on their website, cms.gov, it can be challenging to sift through everything to see what affects you. Here, we break down 2024 Medicare coverage changes by part.

Medicare Part A (inpatient care)

• Part A premiums decreased by $1 in 2024. About 99% of Medicare beneficiaries do not have a Part A premium at all—but for those who did not have enough Medicare-covered employment determined by Social Security, they may pay up to $505 each month.
• The 2024 Part A deductible rose from $1,600 to $1,632. The deductible must be paid when a person with Medicare is admitted to the hospital. Medicare subsequently covers up to 60 days of inpatient care without additional cost-sharing
• Part A coinsurance increased by $8 per hospital inpatient day to $408 per day for days 61-90 and by $16 to $816 per day for 60 Lifetime Reserve Days.

Medicare Part B (outpatient care)

• The standard Part B monthly premium increased by less than $10. (It’s $174.70 per month now, compared to $164.90 in 2023.)
• The Medicare Part B deductible is now $240 (up $14 from 2023).
• Those with higher incomes must pay a higher amount for standard Part B premiums. The Medicare income limit is rising to $103,000 for individuals and $206,000 for joint filers. Previously, it was $97,000 and $123,000, respectively. 

Medicare Advantage and Medicare Part D (prescription drugs)

• The average premium for Medicare Advantage plans remains relatively stable. Medicare Advantage premiums vary by plan, but the average premium across all plans is $18.50 per month in 2024—only a $0.50 increase per month from the 2023 average.
• The national base Medicare Part D premium is now $34.70 per month.
• No Medicare Part D deductible can be greater than $545, a $40 increase from 2023.
• The initial coverage increased to $5,030 from $4,660.
• Catastrophic coverage is up $600. In 2024, once enrollees pay $8,000 in out-of-pocket costs, they will no longer have to pay for medications covered by the Part D drug plan.
• The drugs covered by your plan may have also changed. Refer to your plan’s formulary to determine if your prescriptions are still covered. You should always review your plan’s formulary and upcoming changes to coverage during fall open enrollment.

RELATED: What is the Medicare donut hole?

Extra Help

• The income threshold for Extra Help has increased to 150% or less of the federal poverty level. People within this bracket (a monthly income below $1,843 for an individual or $2,485 for a married couple) may qualify for this low-income subsidy program, which helps cover copayments and premiums associated with Medicare Part D plans.

Learn more about Medicare

For more information on Medicare changes, refer to the Medicare and You 2024 Handbook.

To see if you qualify for Medicare during the next Open Enrollment Period, SingleCare has many resources. You can even use SingleCare with Medicare to help save more on prescription drug coverage, whether that be brand-name or generic drugs—but you can’t use them together. You may want to use SingleCare if our prices are lower than the Medicare price; however, those costs won’t count toward your deductible.

Sources

• Health insurance coverage in the United States: 2022, United States Census Bureau (2023)
• The Centers for Medicare & Medicaid Services, CMS
• 2024 Medicare Parts A & B premiums and deductibles, CMS (2023)
• 2024 Medicare costs, medicare.gov (2023)
• Medicare Advantage and Medicare prescription drug programs to remain stable in 2024, CMS (2023)
• Catastrophic coverage, medicare.gov
• Costs in the coverage gap, medicare.gov
• Save on your Medicare drug costs with Extra Help, CMS (2023)
• Medicare and You 2024: The official U.S. government Medicare handbook, medicare.gov (2024)