Every year, Medicare undergoes a series of changes, from adjustments in premiums and deductibles to alterations in rules and regulations. To make the most of Medicare in 2024, it’s vital to grasp the upcoming modifications. But what exactly are Medicare parts, and how are their costs calculated to increase?
Medicare consists of several parts, each covering different aspects of healthcare. Part A focuses on hospital insurance and is generally premium-free for those who’ve paid Medicare taxes for a specific duration. Part B deals with medical insurance, including doctor’s visits, and requires a monthly premium. Part C, also known as Medicare Advantage, offers an alternative to Original Medicare and often includes prescription drug coverage. Part D is the prescription drug coverage component.
Medicare’s Costs – Will 2024 Changes Help or Hurt Seniors?
The costs of these Medicare parts can increase due to various factors, including changes in healthcare expenses, inflation, and government decisions. Premiums and deductibles may rise, impacting beneficiaries’ budgets. In 2024, it’s expected that some adjustments will occur, making it decisive for seniors and those eligible for Medicare to stay updated on the latest price rises to be applied.
Medicare Part A provides coverage for your hospital expenses and care in a skilled nursing facility (SNF). The majority of individuals receive Part A without any costs, but for those who haven’t accumulated enough work credits to qualify for free Part A, the premiums will remain relatively stable. In 2024, if you need to purchase Medicare Part A, the monthly cost will be either $278 or $505, compared to $278 or $506 in 2023.
When it comes to the inpatient hospital deductible, which you are responsible for paying before Medicare begins covering expenses, it will be set at $1,632 in 2024, an increase from $1,600 in 2023. It’s worth noting that specific Medigap plans can cover your Part A deductible. You’ll be responsible for the Part A deductible for each inpatient hospital or SNF benefit period, and a new benefit period commences if you haven’t received inpatient hospital care or SNF care for 60 consecutive days.
Medicare covers the first 60 days in a hospital or the first 20 days in a skilled nursing facility (once you hit the deductible). Co-payments for the rest of your stay are somewhat higher in 2024, and are as follows:
- $408 per day for days 61 to 90 in a hospital (up from $400 in 2023).
- $816 per day for lifetime reserve days in a hospital (up from $800 in 2023). (These are any days over 90 days; you have 60 lifetime reserve days.)
- $204 per day for days 21 to 100 in a skilled nursing facility (up from $200 in 2023).
Medicare Part B Costs Also Planned to Increase
Medicare Part B provides coverage for your medical provider visits and includes services such as ambulance transportation and durable medical equipment. It’s important to note that everyone, regardless of whether they have a Medicare Advantage plan, is required to pay a premium for Part B.
In the year 2024, the monthly premium for Medicare Part B will increase to $174.70, compared to $164.90 in 2023. Additionally, the Part B deductible will also see an increase, rising from $226 in 2023 to $240 in 2024. It’s worth mentioning that you only need to pay the Part B deductible once per year.