Medicare In 2024: Costs and Changes

The last quarter of the year is a big time for planning - whether it’s getting ready for the holidays, researching where you’ll go on that big family vacation next year, or budgeting for medical expenses. 

While you’re in planning mode - especially during the Medicare Annual Enrollment Period in which you may be reviewing your Medicare coverage for 2024 - it’s important to know that Medicare costs and plans can change on an annual basis. 

In fact, not only can your insurance company make changes to your Medicare Advantage plan each year (as outlined in your Annual Notice of Change), but also, the Social Security Administration determines Medicare costs on an annual basis. Congress occasionally proposes and passes legislation that impacts Medicare benefits. 

In this guide to 2024 Medicare costs, we’ll review recent changes in Medicare costs from 2023 and highlight the overall state of Medicare in 2024. 

Overview of 2024 Medicare Costs

The Medicare costs that can change each year are the Part A deductible, the Part A daily coinsurance, and the Part B deductible.
 

2024 Medicare Part A Costs

In 2024, we will see several cost increases for Medicare Part A.  Part A, often known as Hospital Insurance, covers inpatient hospitals, skilled nursing facilities, hospice, inpatient rehabilitation, and some home health care services. 

Part A costs $0 for most people because they (or their spouse) paid Medicare taxes long enough while working - generally at least 10 years. If you get Medicare earlier than age 65, you won’t pay a Part A premium, which is sometimes called “premium-free Part A.” 

However, if you have fewer than 40 quarters of Medicare-covered employment or are a Medicare-eligible person with a qualifying disability, you will pay a Part A premium.The monthly Part A premium will decrease to $505 in 2024 - just $1 less than 2023. 

The other 2024 changes to Medicare Part A costs include:
 

• Part A deductible for inpatient hospital services will be $1,632 (a $32 increase from 2023). This covers a beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care.
• Daily hospital coinsurance for the 61st-90th day of hospitalization will be $408 per day ($8 increase)
• Daily hospital coinsurance for lifetime reserve days will be $816 per day ($16 increase).
• Skilled nursing facility daily coinsurance will be $204 on days 21-100 of extended care services in a benefit period ($4 increase).
   

Keep in mind that it is possible to pay the Part A deductible more than once in a year. This would only happen when you have multiple hospital stays in one year, and your stays are separated by more than 60 days. In this situation, you’d pay the Part A deductible each time.

Paying the Part A deductible gets you 60 days in the hospital and 20 days in a skilled nursing facility. If your stay goes beyond those days, you’ll have to pay the updated daily coinsurance amounts indicated above.    

2024 Medicare Part B Costs

Medicare Part B (your medical insurance) covers outpatient services like doctor’s visits, preventive screenings, durable medicare equipment, and certain vaccines. Each year, the Medicare Part B costs (premium, deductible and coinsurance) are determined by provisions within the Social Security Act. 

We will see certain Part B cost changes in 2024, including: 

• The Medicare Part B monthly premium will be $174.04 (an increase of $9.80 from 2023). 
• The Part B annual deductible will be $240 ($14 increase).

These Part B cost increases are mainly due to projected rises in healthcare spending. 

The Part B deductible is paid prior to when Medicare coverage begins each year, paying its portion of your outpatient care. Unlike the Part A deductible, you’ll only be required to pay the Part B deductible once per year.

After you’ve met the Part B deductible, Medicare will pay the first 80% of the cost for your care, and you are responsible for the remaining 20%. Besides standard Part B coinsurance, you might encounter Part B excess charges, which can be as much as 15% of the Medicare-approved cost for your care.

Note: These 2024 Medicare costs and updates are courtesy of the Centers for Medicare & Medicaid Services (CMS). 
For more information, visit the CMS newsroom.

Key Medicare In 2024 Updates

It’s worth noting a few updates and reminders that are relevant for the 2024 plan year. 
 

#1. Lower out-of-pocket drug costs

Beginning in 2024, you will not have to pay a copayment or coinsurance if your prescription drugs costs are high enough to reach the catastrophic coverage phase in your Medicare Part D drug coverage.
 

Also beginning in 2024, the Medicare Extra Help program (Part D Low-Income Subsidy (LIS) program) will expand to cover more prescriptions for people with limited resources who earn less than 150% of the federal poverty level. That means people who qualify for Extra Help will generally pay no more than $4.50 for each generic drug and $11.20 for each brand-name drug. 
 

#2. Lower costs for insulin and vaccines

Your Medicare plan can’t charge you more than $35 for a one-month supply of each insulin covered under Medicare Part D. You also don’t have to pay a deductible for it. If you take insulin through a traditional pump that is covered under Medicare’s durable medical equipment benefit, your insulin is covered under Medicare Part B. 

#3. More recommended adult vaccines will be covered

If you have Medicare Part D, you’ll now pay nothing out-of-pocket for even more vaccines. View what’s covered under the prescription drug law to get a reminder of these covered vaccines. 

#4. Telehealth services 

Medicare covers certain telehealth services offered by a doctor or health care practitioner. You can still get telehealth services at any U.S. location including your home until December 31, 2024. 

However, you can still get certain qualifying Medicare telehealth services, including

• Monthly End-Stage Renal Disease (ESRD) visits for home dialysis.
• Services for diagnosis, evaluation, or treatment of symptoms of an acute stroke wherever you are, including in a mobile stroke unit.
• Services to treat a substance use disorder or a co-occurring mental health disorder (also called a “dual disorder”) or for the diagnosis, evaluation, or treatment of a mental health disorder, including in your home.
• Behavioral health services, including in your home.
  
   

#5. Mental health services 

Starting January 1, 2024, Medicare will cover intensive outpatient program services provided by hospitals, community mental health centers, and other locations if you need mental health care.
 

#6. Drugs selected for price negotiations 

In August 2023, the Centers for Medicare & Medicaid Services (CMS) announced the first 10 drugs selected for price negotiation that are covered under Medicare Part D. These negotiations with participating drug companies will occur in 2023 and 2024, and any negotiated prices will become effective beginning in 2026. 

The selected drug list for the first round of negotiation is:

• Eliquis
• Jardiance
• Xarelto
• Januvia
• Farxiga
• Entresto
• Enbrel
• Imbruvica
• Stelara
• Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill

Get Help With Medicare Costs 

We will continue to monitor and share any further updates if more news unfolds about any additional changes to 2024 Medicare plans or costs. If you have questions about 2024 Medicare plan costs, changes, or how they might impact you, call 1-800-596-1715 (TTY 711) toll-free to speak to one of our licensed insurance agents.

You can also view our Medicare resources

• Compare Medicare plans: Go to our Medicare Advantage plan comparison tool to see Medicare plans in your area.
• Learn about Medicare: Read about Medicare in our Medicare Learning Center.