What are the changes and updates to the Medicare system and how can they affect you?

If you’re enrolled in Original Medicare (Parts A and B), there was a rise in your out-of-pocket expenses.

Part A, which covers inpatient hospital stays, skilled nursing facility care, and hospice care, also has a slightly higher deductible this year. If you’re admitted to the hospital, you’ll be responsible for an initial deductible of $1,632 before Medicare kicks in.

Part B, which covers doctor visits, outpatient care, and some preventive services, has a higher monthly premium in 2024. You’ll be paying $174.70 per month, an increase of nearly $10 from 2023. Additionally, the annual deductible for Part B has gone up to $240, an increase of $14.

For individuals with higher incomes, the Income-Related Monthly Adjustment Amount (IRMAA) has also seen a slight increase. This surcharge is applied to Part B premiums, with rates ranging from $69.90 to $419.30 depending on your income bracket. It’s important to note that only about 8% of beneficiaries are affected by IRMAA.

Changes to Part D

There’s some positive news for those enrolled in Medicare Part D prescription drug plans. The Inflation Reduction Act has led to a slight decrease in average monthly premiums for Part D plans, bringing the average cost down to $55.50 per month. However, it’s important to remember that this is an average, and your specific plan costs could vary depending on your chosen plan and medications.

Another change for 2024 was increasing the threshold for catastrophic coverage, Once your out-of-pocket and manufacturer subsidies reach $8,000, you’ll enter the stage. This new rule eliminates the 5% copay, effectively capping your yearly out-of-pocket spending at around $3,300. This protection is projected to decrease further to $2,000 in 2025.