Medicare Changes for 2024
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Most Medicare monthly rates, deductibles and additional costs are increasing in 2024.
The price of Part B is rising from $164.90 per month to $174.70, a 6% increase. Part B's deductible is going up by $14 per month. And you'll pay $32 more each time you're admitted to the hospital because of the new deductible for Part A.
But there is good news. People who need expensive prescription medications might pay less overall due to Medicare Part D changes.
Higher Medicare Part A costs
Most Medicare Part A costs are going up by about 2% in 2024.
The major cost of Part A is the deductible, which increases from $1,600 to $1,632 in 2024.
Part A cost | 2023 amount | 2024 amount | Change |
|---|---|---|---|
| Hospital deductible | $1,600 | $1,632 | +$32 |
| Hospital coinsurance days 61-90 | $400 | $408 | +$8 |
| Hospital coinsurance days 91+ | $800 | $816 | +$16 |
| Skilled nursing facility coinsurance days 21-100 | $200 | $204 | +$4 |
| Monthly rate if you worked 7.5 years or fewer | $506 | $505 | -$1 |
Part A premiums only apply if you paid Medicare taxes for fewer than 40 quarters.
Part A premiums
Most people don't pay a monthly rate for Medicare Part A, and that won't change. The monthly cost is free if you worked and paid Medicare taxes for at least 10 years (40 quarters).
If you paid Medicare taxes for fewer than 10 years, you have to pay for Medicare Part A. If you worked between seven and a half to just under 10 years, which is 30 and 39 quarters, you pay $278 each month for Part A. This is the same cost as in 2023.
The only Part A cost that is going down in 2024 is the monthly rate for people who worked for fewer than seven and a half years (30 quarters). The monthly cost for these people is going down by $1 per month, from $506 to $505.
Part A deductible
The Part A deductible is $1,632 in 2024, an increase of $32. You pay the Part A deductible for most hospital stays.
Part A hospital coinsurance
The first 60 days in the hospital come at no cost to you after you pay your deductible. If you're in the hospital more than 60 days, you and Medicare split the bill for each day. This is called coinsurance. The 2024 Part A coinsurance amounts increase by 2% compared to 2023.
- Days 1 to 60 in the hospital: You pay the $1,632 deductible. You won't pay any coinsurance for the first 60 days in the hospital.
- Days 61 to 90 in the hospital: You pay $408 per day, up from $400 in 2023.
- Days 91 and over in the hospital: You pay $816 for each day over day 90, an increase of $16 per day from 2023. These are called "lifetime reserve days," and you get a total of 60.
Part A skilled nursing facility coinsurance
If you need to be in a skilled nursing facility, you'll pay more in 2024. Like other Part A costs, the coinsurance for skilled nursing care is increasing by about 2%.
- Days 1 to 20 in a skilled nursing facility: You pay the $1,632 Part A deductible. There is no coinsurance for the first 20 days of care.
- Days 21 to 100 in a skilled nursing facility: You pay $204 per day. That's an increase from $200 per day in 2023.
- Days 101 and over in a skilled nursing facility: You pay all costs for skilled nursing care.
Part B costs more in 2024
Medicare Part B costs more per month in 2024, and the deductible is higher.
The cost of Medicare Part B goes from $164.90 per month in 2023 to $174.70 in 2024. That's an increase of $9.80 per month, or about $118 per year.
The Medicare Part B deductible is also going up slightly in 2024. The annual Part B deductible will go from $226 in 2023 to $240 in 2024, an increase of $14.
Part B cost | 2023 amount | 2024 amount | Change |
|---|---|---|---|
| Premium | $164.90 | $174.70 | +$9.80 |
| Annual deductible | $226 | $240 | +$14 |
Medicare Part D changes
A Part D prescription drug plan costs an average of $59 in 2024, up from $49 in 2023.
Your other Part D costs will increase for 2024. The maximum Part D deductible will increase from $505 in 2023 to $545 in 2024. After that, you also have to reach higher total drug costs in the initial coverage phase, before you enter the donut hole. In 2024, your total drug costs have to reach $5,030 to enter the donut hole, up from $4,660 last year.
You also have to spend more to enter the catastrophic coverage phase, which is when you get through the donut hole phase and your benefits improve. In 2024, your total drug costs have to reach $8,000 to enter the catastrophic phase of coverage, up from $7,400 in 2023 to $8,000 in 2024. After that, you don't pay for your medications.
This is one of the most important updates to Medicare in 2024. Once you hit the catastrophic phase, you don't pay anything for your covered medications. This applies to Part D plans and Medicare Advantage plans with drug coverage.
This is because Medicare got rid of the 5% coinsurance in the catastrophic phase of drug plans. In 2019, the most recent year with data, over 1.5 million people reached the catastrophic phase of coverage. Eliminating the coinsurance during this phase will help people with Part D or a Medicare Advantage plan with drug coverage save money.
Part D cost | 2023 amount | 2024 amount | Change |
|---|---|---|---|
| Average monthly rate | $49 | $59 | +$10 |
| Maximum annual deductible | $505 | $545 | +$40 |
| Donut hole threshold | $4,660 | $5,030 | +$370 |
| Catastrophic phase threshold | $7,400 | $8,000 | +$600 |
Part D low-income subsidies
Another important change to Part D in 2024 is how the low-income subsidies work. This program helps people with low incomes afford their medications. The changes for 2024 will broaden the scope of this program and give more people access to affordable medications.
Depending on your income and resources, you can qualify either for partial or full benefits, which offer different levels of financial help. The new regulations for 2024 will allow more people to qualify for full benefits, which gives more financial assistance for covered drugs.
Medicare Advantage changes for 2024
On average, a Medicare Advantage plan costs $27 in 2024, down from $28 in 2023.
The most you might pay for your medical care with a Medicare Advantage plan in 2024 is $8,850 if you use in-network doctors. That's an increase of $550 compared to 2023.
Most Medicare Advantage plans, which are also called Part C plans, include prescription drug coverage. The changes to Medicare Part D also apply to the drug coverage on Medicare Advantage policies.
There are also some important changes to Medicare Advantage plans that don't have to do with costs. The Centers for Medicare & Medicaid Services (CMS) has put more restrictions on Medicare Advantage ads to help cut down on misleading or confusing information. This should help you better understand any plans that you might consider based on an advertisement.
Medicare Advantage plans in 2024 will also have limitations on when a preauthorization can be required. Now, Medicare Advantage plans can only require a preauthorization to confirm a diagnosis or to confirm that a treatment is medically necessary. This could help speed up how quickly you can get medical care.
Medigap changes
The average monthly cost for most Medicare Supplement plans is increasing in 2024.
Plans F and G, which are the most popular options, both have a 2% increase in their average monthly costs. Plan N is also a popular choice, and its average monthly cost stays the same for 2024. Plans L and M have a decrease in their average monthly rates, although these plans are not common choices.
Medigap plan | 2023 rate | 2024 rate | Change |
|---|---|---|---|
| A | $141 | $141 | $0 |
| B | $177 | $179 | +$2 |
| C | $204 | $210 | +$6 |
| D | $166 | $167 | +$1 |
| F | $181 | $184 | +$3 |
Rates are average monthly costs for a 65-year-old nonsmoking woman.
The deductible for the high-deductible version of Plans F and G increases from $2,700 to $2,800 in 2024.
Medigap Plans K and L put a cap on your total yearly health care spending. This is called an out-of-pocket maximum. The cap for Plan K is $7,060 in 2024, up from $6,940 in 2023. Plan L's cap in 2024 is $3,530, an increase from $3,470 in 2023.
Frequently asked questions
What changes are coming to Medicare in 2024?
The biggest changes to Medicare in 2024 are higher rates and costs, including deductibles and coinsurance amounts. But some people with a Part D drug plan or a Medicare Advantage plan with prescription drug coverage could have lower overall costs since they won't have to pay for their medications once the total cost reaches $8,000.
What will Medicare Part B premiums be in 2024?
Medicare Part B will cost $174.70 in 2024. That's a 6% increase from the 2023 price of $164.90.
What is the Medicare deductible for 2024?
The Medicare Part A deductible for 2023 is $1,632. This is an increase of $32 from 2023. For Part B, the deductible will increase to $240 from $226.
Sources
All Medicare cost, coverage and benefit information was obtained from Medicare.gov and CMS.gov. KFF was used as a source for the number of Americans who reached the Part D catastrophic coverage phase.
Medicare Advantage rates are averages based on data from the Centers for Medicare & Medicaid Services (CMS). Average rates include only plans that have prescription drug coverage. Rates exclude group plans, Health Care Prepayment Plans (HCPPs), Medicare-Medicaid Plans (MMPs), Medical Savings Account (MSA) plans, Programs of All-Inclusive Care for the Elderly (PACE) plans, sanctioned plans and Special Needs Plans (SNPs).
Medicare Supplement rates are based on actuarial data for private health insurance companies. Rates are averages for a 65-year-old woman who doesn't smoke and has preferred rates, without health conditions factored in. Rates are also for the initial sign-up period, when a person is first eligible for Medigap coverage.
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