Medicare Advantage, also known as Medicare Part C, is an alternative to Original Medicare (Medicare Part A and Part B). These options are provided by private insurance companies that are approved by Medicare. They combine the benefits of both hospital insurance (Part A) and medical insurance (Part B) into a single plan.
These private Medicare plans often include additional coverage, such as prescription drug coverage (Medicare Part D), dental, vision, hearing, and wellbeing programs. Some Medicare Advantage plans may also offer benefits like gym memberships or telehealth services.
Will Your Medicare Advantage Plan Premium Increase in 2024?
According to some estimations, enrollment in Advantage plans is expected to continue rising, going from 31.6 million this year to 33.8 million by 2024. This increase will mean that approximately half of all Medicare beneficiaries will be enrolled in these plans.
The projections for premiums in Medicare Advantage plans, also known as Part C, have been revealed ahead of the Medicare open enrollment period, beginning on October 15. Nearly 66 million enrollees in the program will have until December 7 to review their coverage options and make changes, which would become effective in January 2024.
In terms of premium changes, the average monthly premium for Medicare Part D prescription drug coverage is anticipated to decrease by approximately 1.8 percent in 2024, dropping from $56.49 this year to $55.50 next year. However, the actual premiums for these plans can vary based on location and the specific plan chosen.
There’s more to consider in the panorama: most MA plans include prescription drug coverage. As for the premiums and deductibles for Medicare Part A (hospital care) and Part B (doctor visits and outpatient services) in 2024, the possible new rates have not been announced.
While most Medicare beneficiaries are not required to pay a Part A premium due to prior Medicare tax contributions, all Medicare enrollees pay Part B premiums, which are automatically deducted from their Social Security benefits if they’ve signed up for retirement payments.
Additionally, MA members may pay premiums imposed by their chosen plan, and original Medicare beneficiaries who purchase supplemental Medigap coverage also pay premiums for those policies.
Who Can Enroll in Medicare Advantage Plans?
Individuals who are eligible for Medicare (typically aged 65 and older or those with certain disabilities) can choose to enroll in a Medicare Advantage plan instead of using Original Medicare. These plans can provide more comprehensive coverage and often have different cost-sharing arrangements, including deductibles, copayments, and out-of-pocket maximums. However, individuals who enroll in Medicare Advantage plans must still pay their Medicare Part B premiums.
Medicare Advantage plans are required to cover at least the same benefits as Original Medicare, but they can offer additional services and may have different rules and restrictions. It’s important for individuals considering Medicare Advantage to carefully compare the options available in their area to select the plan that best meets their healthcare needs and budget. Existing over 4,000 plans in the United States, for sure there’s an option for you that fits all your needs.