2024 Medicare Changes: What Medicare Beneficiaries Should Know

Medicare is a federally funded insurance option for those over 65 or with a disability. It consists of three parts:

• Part A: hospital insurance
• Part B: medical insurance
• Part D: drug coverage, which must be entered into on a separate, optional plan

It’s also possible to have Medicare Part C, also known as a Medicare Advantage plan. These plans are hosted through a private insurer instead of the government. Sometimes they include extra services, like vision or dental coverage, or offer lower out-of-pocket costs than original Medicare.

Each year, the cost of Medicare services changes slightly. Continue reading for 2024 prices and any coverage changes for parts A, B, C, and D.

Note: Medicare costs can vary depending on income level, how much someone paid into social security, and coverage. For estimated costs, check out this resource.

Medicare Part A Stays the Same

Medicare Part A covers short-term inpatient hospital stays and care in a skilled nursing facility, if not long-term. Certain home health care services and hospice care are also covered. Long-term care is not usually covered, unless someone gets Medicare supplement insurance.

In 2024, Medicare Part A will operate similarly to previous years, though premiums and deductibles may increase for some beneficiaries. For most, the Medicare Part A premium will be free. If someone didn’t pay enough in Medicare tax while working, they could have a premium of up to $505.

The part A deductible, sometimes called the inpatient hospital deductible, increased to $1,632 in 2024 (up $32 from last year’s annual deductible).

Rising Costs for Medicare Part B

Medicare Part B covers:

• Necessary medical services to diagnose or treat conditions
• Preventative screenings and services, such as a flu shot or diabetes screening

For a full list of preventative screenings covered in 2024.

The Medicare Part B premium increased for all beneficiaries this past year. The standard monthly premium is $174.70 in 2024, up $10 from 2023, but this isn’t the price everyone will pay. Depending on income, beneficiaries could pay up to $594 per month.

The Part B deductible, the amount a beneficiary pays before Medicare covers healthcare costs, is $240 in 2024. This is up $14 from the 2024 deductible.

Medicare Part C Remains the Same

Beneficiaries have two enrollment options: select original Medicare or a Medicare Advantage (MA) Plan, sometimes referred to as Part C. MA plans are offered by private insurance companies with costs and benefits varying greatly from plan to plan.

Medicare Advantage Plans sometimes offer higher or lower costs and additional services, such as vision, dental, and/​or hearing coverage, better access to skilled nursing facilities, prescription drug coverage, and more. They also have a yearly limit on how much the beneficiary spends, which original Medicare does not have.

While there are no federal changes for Medicare Part C, it’s important to explore all benefits and costs of these plans, since policies can differ from company to company.

Medicare Part D and Prescription Drug Coverage

Perhaps the biggest change this year is to Medicare Part D, an optional Medicare plan that covers prescription drugs. Medicare Part D costs and benefits vary based on the plan chosen and the income level of the beneficiary. Costs will also fluctuate depending on the drug tier of the medication a beneficiary needs. Some Part D plans have a deductible while others don’t.

Thanks to the Inflation Reduction Act, certain prescription drugs are more affordable and there’s less cost sharing for those with original Medicare and Medicare Advantage.

Specific 2024 changes for those with Medicare prescription drug plans include:

• Monthly payments for insulin are capped at $35 a month.
• Those with medication costs that reach the catastrophic level ($8,000 for 2024) no longer have to pay coinsurance or copayment on prescriptions.
• The ability to get recommended vaccines without patient cost sharing
• Expansion of the Extra Help program from the Social Security Administration for those who are 150% below the federal poverty level

Note: In 2025, more changes will come to Part D due to the Inflation Reduction Act. The biggest one is that those with Medicare coverage will experience a $2,000 annual cap on out-of-pocket medication costs in 2025.

For most beneficiaries, the Medicare initial enrollment period starts seven months before their 65^th Birthday and ends three months after. If someone meets certain qualifications, they can enjoy a special enrollment period and won’t be penalized if they enroll later than three months after turning 65. In 2024, Medicare expanded who is eligible for special enrollment.

Special enrollment now applies if someone:

• Recently lost Medicaid services
• Had a group health plan during their initial enrollment period through work, and is now off that plan
• Was impacted by a natural disaster

Those who have health insurance through the Marketplace or an organization that is not an employer are not eligible for special enrollment.

Along with changes to cost and enrollment, there are some expansions to what is covered under Medicare in 2024, as well as one service included this year, but not in 2025.

Coverage for Chronic Pain

Medicare will now cover chronic pain management for those who have experienced symptoms for more than three months. This includes care coordination, medication management, and pain assessment services.

More Coverage for Mental Health

Medicare has expanded its mental health coverage. In the past, part A covered inpatient mental health services and will continue to do so.

Part B will continue to cover behavioral health services for conditions like anxiety and depression by qualified mental health counselors. These services include individual counseling, psychotherapy, and group counseling. Before, these services had to take place in outpatient centers, such as psychiatry or psychology practices. Now Medicare will also cover more intensive outpatient services, known as partial hospitalization at a doctor’s office, hospital, or community center.

Mental health coverage under Part B will expand in 2024 to include family and marriage therapy. Marriage and family therapists will have to register to serve people with Medicare, so if you’re looking for these services find a provider who is Medicare-approved.

Typically, the beneficiary pays 20% of the mental health cost for services covered by Part B and Medicare pays the rest.

Telehealth Remains, But Shrinks in 2025

Currently, Medicare covers telehealth services for all beneficiaries. They will continue to do so through 2024 and beneficiaries can attend telehealth appointments in their home or any other location in the United States.

However, telehealth coverage will shrink in 2025. Next year, only those who live in rural areas will have access. The one exception will be mental healthcare, which will still be available virtually.