Medicare Changes 2024

The U.S. Medicare system can change annually—sometimes a little, sometimes a lot. The Centers for Medicare and Medicaid Services (CMS) announces these changes every year in September and October before open enrollment, which goes from Oct. 15 to Dec. 7.

Changes include new premiums, coverage, deductibles, and coinsurance amounts for all four Medicare parts. Learn more about changes for 2024, including higher Part A and Part B premiums and deductibles, and lower Part D costs.

Medicare Part A

Medicare Part A covers inpatient hospitals, skilled nursing facilities, and some home healthcare services. Medicare Part A doesn’t charge a premium for those with 40 quarters or more of Medicare-covered employment. 

Around 99% of Medicare beneficiaries don’t pay a Medicare Part A premium, according to CMS. 

If you pay for Part A coverage with at least 30 quarters of employment or are married to someone with the qualifying quarters, your premium is $278 in 2024, the same amount as in 2023. If you have between 30 and 39 quarters, your new premium is $505 a month in 2024, down $1 from $506 in 2023.

Medicare Part B

Medicare Part B covers a wide range of services, including: 

• Physician services
• Outpatient hospital services
• Certain home health services
• Durable medical equipment
• Certain other medical and health services not covered by Medicare Part A

In 2024, the standard monthly premium for Medicare Part B enrollees will be $174.70, a $9.80 increase from $164.90 in 2023.

Medigap

When you enroll in Medicare, you must choose between Original Medicare (Parts A and B) and a Medicare Advantage Plan (Part C). Most people who opt for Original Medicare also get a Medigap plan designed to fill the gaps in Original Medicare coverage.

Medigap policies, also known as Medicare supplement insurance plans, are sold by private companies. Premiums vary by company and coverage provided. For example, some Medigap plans cover medical care when you travel outside the U.S., while others do not.

Medicare Part C (Medicare Advantage)

Private companies offer Medicare Advantage plans (Part C) in contract with Medicare. Around 50% of Medicare recipients are in Medicare Advantage (MA) plans, which provide Part A, B, and sometimes D (drug) benefits. Most plans offer attractive extras, such as dental, vision, and hearing coverage or gym memberships, and lower premiums. 

Medicare Advantage plans require you to choose in-network providers. If you go outside the plan’s network or geographical area, you may pay more or not have coverage at all.

For 2024, CMS says it anticipates premiums for Medicare Advantage to stay fairly flat compared to 2023. Average monthly premium Medicare Advantage prices should be $18.50 in 2024, compared to $17.86 in 2023. Around 73% of beneficiaries won’t see any increase at all.

Due to the Inflation Reduction Act, many Medicare Advantage plans will offer insulin at a $35 monthly copay or less. Other 2024 Medicare Advantage plan changes include broader access to behavioral health services and limits on requirements carriers can impose regarding prior authorization for treatments. A new emphasis on health equity will ask MA organizations to provide culturally competent services and inform recipients about multilingual providers.

Medicare Part D (Prescription Drugs)

Prescription drug coverage may be offered through Medicare Advantage (see above) and through a Part D Prescription Drug plan.

Though Part D prices have risen in past years, CMS expects premiums to fall in 2024. In fact, CMS estimates the monthly Part D premium to decrease from $56.49 in 2023 to $55.50 in 2024.

The decrease results from several policy changes due to the Inflation Reduction Act of 2022. In 2023, changes included a $35 cost-sharing limit on a month’s supply of each covered insulin product and no-cost adult vaccines.

New cost-sharing limits come into play in 2024. After your out-of-pocket spending reaches $8,000, you'll no longer have Part D drug copayments or coinsurance for the remainder of the calendar year.

In 2024, more people will qualify for Extra Help expansion. Qualified Medicare recipients can avoid a deductible and premiums and get some fixed lower copayments. Enrollees can save an average of nearly $300 per year.

Part D Donut Hole

Also in 2024-2025, changes come to the Part D "donut hole."

Medicare prescription drug plans feature a coverage gap, or a temporary limit on drug plan coverage. This coverage gap is often called the "donut hole." The donut hole kicks in after you and your insurer have spent a certain amount on medications in combined costs. For 2024, this coverage gap starts when you and your drug plan spend $5,030 on covered drugs, higher than 2023's amount of $4,660.

After $5,030, you must pay a portion of your drugs out of pocket up to your plan’s out-of-pocket threshold. After reaching this level, you won’t pay more than 25% of the full drug costs (brand-name and generic), whether you buy your prescriptions at a pharmacy or online.

Once you've exceeded that amount, your coverage kicks in again. After reaching your out-of-pocket maximum for covered drugs ($8,000 in 2024), you enter the catastrophic coverage phase. In 2024, this phase means cost-sharing for covered drugs is eliminated.

2024 Premiums and Deductibles

Most of the premiums, deductibles, and coinsurance amounts for the different Medicare parts have changed. According to our research, the amounts for 2024 are:

2024 Medicare Costs

The Bottom Line

This year and the next few years will usher in changes in Medicare. While prices increased for some Medicare parts, prices decreased for drug coverage. Familiarize yourself with changes so you're better prepared to choose a plan right for you.