January of 2024 will bring changes to both Social Security and Medicare. Each year, important adjustments are made to these programs. OurSeniors.Net strives to keep seniors up to date as the Social Security Administration and the Centers for Medicare and Medicaid Services (CMS) make them available. Here is a quick summary of 2024’s most important changes.
Medicare, 2024 The new year will bring new premiums, coverage, deductibles, and coinsurance amounts for all four Medicare parts. Both Original Medicare beneficiaries and Advantage Plan (Part C) members will see changes. These changes include-
- For most enrollees, Medicare Part B premiums will increase to $174.70 for 2024. This is a 5.9% increase.
- Part B premiums for Medicare beneficiaries with high incomes are also going up. Medicare officials say about 8 percent of Medicare enrollees pay more than the standard monthly premium. Seniors with annual incomes greater than $103,000 will pay more; how much more will depend on their earnings. Someone filing an individual tax return whose income is between $103,000 and $129,000 will pay $244.60 a month for Part B instead of the standard $174.70.
- The annual deductible for all Medicare Part B beneficiaries is $240 in 2024, up from $226 in 2023.
- The Medicare Part A inpatient hospital deductible will be $1,632 in 2024, an increase of $32 or 2% from the 2023 level of $1,600. Most Medicare beneficiaries pay no premium for Part A.
- Medicare Supplement Plans in 2024- Medigap insurance premiums do not change by year, as each company has its own rates. Monthly premiums typically change based on the anniversary of your plan. Also, the coverage of Medicare Supplement Plans in 2024 will not change.
- Medicare Part D Coverage in 2024- Part D coverage will see significant changes. These adjustments include changes to the catastrophic phase drug costs, with enrollees now responsible for 20% of total drug costs instead of 15%.
- Part D plan members who take insulin will continue to see the $35 cap for a monthly supply that began in 2023. A covered insulin product is one that is included on a Part D sponsor’s formulary.
- Medicare supplement insurance plans (Medigap policies) are sold by private companies. Premiums vary by company and coverage provided, and they change on renewal dates, not annually.
Those are important changes to Original Medicare members, but what about Advantage plan (Part C) enrollees? Around 50% of Medicare recipients are in Advantage plans. Advantage plans provide Part A, B, and usually Part D (drug) benefits. Medigap plans are the same everywhere, but Advantage plans are all local organizations with local prices, benefits, and networks of providers. Therefore, changes to Advantage plans are determined individually.
Here is what the Centers for Medicare Services expects for Advantage plan enrollees-
- For 2024, CMS says it anticipates premiums for Medicare Advantage to increase slightly compared to 2023.
- Average monthly premium Medicare Advantage prices should be $18.50 in 2024, compared to $17.86 in 2023. Around 73% of beneficiaries won’t see any increase at all.
- Medicare Advantage plans will offer insulin at a $35 monthly copay or less.
- Other 2024 Medicare Advantage plan changes include broader access to behavioral health services and limits on requirements carriers can impose regarding prior authorization for treatments.
Changes are also coming to Social Security, including the annual COLA. The cost-of-living adjustment gets the headlines, but multiple aspects of Social Security change annually. Here are some of the key changes to Social Security-
- The COLA benefit boost- The cost-of-living increase for 2024 will be 3.2%. That will raise the estimated average retirement benefit by $59 a month, from $1,848 to $1,907. This is a considerably lower increase than the 2023 COLA of 8.7%. Since the early 1990s, the COLA has averaged around 2.5 percent a year.
- Medicare premium offset- If you have Original Medicare Part B, the increase in Medicare premiums will undercut your cost-of-living adjustment. Seniors got a rare break from that offset effect in 2023. The big COLA was accompanied by a drop in Medicare premiums, but the offset effect is back in 2024. The standard monthly Part B premium is rising and shaving about $10 a month off the COLA increase.
- Seniors who collect income from a job on top of monthly SS benefits can earn more in 2024 before having their Social Security impacted. In 2024, the penalty-free amount is increased to $59,520 from $56,520 in 2023. If you will reach Full Retirement Age (FRA now 67) there’s no longer any work-related deduction.
That is a summary of the changes likely to affect you. OurSeniors.Net strives to be your go to source for senior news and useful information. Thanks for reading our blog and don’t forget to tune in live to the OurSeniors Radio Show each Saturday at 8:00 AM on WNDB (FM 93.5 and AM 1150). Recorded shows are available on iTunes, Spotify, The Podcast App, Apple Podcasts, Pocket Casts, Overcast, and many other podcast services. It was created with seniors in mind, so don’t miss it. You can view it on YouTube at OurSeniors.Net Radio.
