Katie Teague
Medicare Premium costs will be changing again, starting in 2024. Medicare Part B costs are expected to get more expensive, while Medicare Part D prices are projected to decrease. We’ll tell you how much below.
Each year, the Social Security Administration determines what the costs associated with the Medicare program will be. It then either raises or lowers premiums and deductibles using rules set out in the Social Security Act.
Here’s how much prices could change if you receive Medicare Parts B and D. In addition, if you receive Social Security, here’s how much the COLA increase is expected to be next year.
Medicare Part B is likely increasing in 2024
Due to a new Alzheimer’s treatment coming to the market (Leqembi, from pharmaceutical companies Eisai and Biogen), Medicare beneficiaries are expected to pick up the cost. Therefore, Medicare Part B prices are expected to increase in 2024. The costs are projected to go up from the current $164.90 to $174.80, a nearly $10 increase per month.
Leqembi is a treatment for those in the early stages of Alzheimer’s disease.
How much less could Medicare Part D cost in 2024?
While you may not see a huge difference in the amount you’re paying for Medicare Part D, it still could be slightly lower. The average total monthly Part D premium is projected to decrease from $56.49 in 2023 to $55.50 in 2024, according to the Centers for Medicare & Medicaid Services (CMS).
Here’s how it works according to the CMS: “The average total Part D premium is the sum of the average basic premium and the average supplemental premium for plans with enhanced coverage and is the most accurate current projection of what people will pay in 2024 for Part D premiums.”
It’s decreasing due to premium stabilization — 2022’s Inflation Reduction Act (IRA) redesigns Medicare Part D and provides a mechanism to limit premium increases for people enrolled in Medicare Part D — and an improved Basic Part D benefit — by capping annual out-of-pocket costs, limiting cost-sharing for covered insulin products and eliminating cost-sharing for recommended adult vaccines in 2024.
When will the CMS make an official announcement?
The CMS anticipates that it will announce the 2024 premiums, copayments and other cost-sharing details for all Medicare Advantage (Part C) and Part D plans in mid to late September, a spokesperson told CNET.
This fall, the CMS also expects to release the Medicare Part A and Part B premiums and deductibles.
What do Medicare Parts A, B, C and D cover?
Medicare Part A covers inpatient hospital, skilled nursing facility, hospice, inpatient rehabilitation and some home health care services.
Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered by Medicare Part A.
Medicare Part C, also known as a Medicare Advantage Plan, is another option for receiving benefits.
Medicare Part D helps cover prescription drug costs.
For more, check out whether you have to enroll in Medicare if you’re 65 and working. Also, here’s what you should know decades before you retire.