2024 Medicare Updates: Key Changes in Premiums, Deductibles, and Drug Costs

Happy New Year, and welcome to another round of new rules and key numbers to help make sense
of things. Here is a list of 2024 changes to Medicare. No one will be affected by all of them, but nearly
everyone will be affected by some of them. 
For most Medicare beneficiaries, the Part B monthly premium will rise to $174.70 in 2024, an
increase of $9.80, or 6% from 2023. The annual Part B deductible, which most people must pay
before their Medicare coverage begins, will rise by $14, or 6.2%, to $240 from $226. Part B coverage
includes doctors, medical equipment and outpatient expenses.
The deductible for Part A will rise 2% to $1,632 in 2024 from $1,600 in 2023. Two-percent increases
will also be applied to coinsurance programs for care in hospitals and skilled nursing homes.
High-income Medicare surcharges, which apply additional premiums for Part B and Part D drug
plans for about 8% of the highest-earning Medicare enrollees, will increase about 6%.
The maximum deductible for Part D drug plans will rise to $545 from $505; plans are able to set
lower deductibles. Medicare beneficiaries pay 25% of drug costs once insurance takes effect and
continue to pay this percentage until out-of-pocket expenses have reached $8,000, up from $7,400 in 2023. This includes their expenses and the value of manufacturer discounts on branded drugs.
The Inflation Reduction Act eliminates the catastrophic zone of Part D plans in 2024,
thus ending consumer co-pays for drugs once the $8,000 threshold has been reached.
In 2025, the law will cap consumer drug costs at $2,000. It will also impose penalties on drug makers
who raise prices by more than the rate of general consumer inflation. The law also authorized
Medicare to being negotiating prices with manufacturers for a small list of drugs; some of these prices
will be announced this year.