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Advertising Supplement
November 12, 2023
Medicare Part B premiums expected to rise for 2024
Although final prices aren’t finalized, consumers can expect to spend about $15 more monthly, which will raise their Medicare Part B premium to $180 for 2024. Blame part of the price increase on Leqembi, a new treatment for those in the early stages of Alzheimer’s disease, which adds $5 monthly to premiums. Medicare will cover the drug for some patients, but they may still need to pay over $5,000 annually.
Without insurance, the drug would cost $26,000. The annual deductible for Medicare Part B in 2024 is expected to remain unchanged at close to $225, the 2023 deductible. Once recipients hit the deductible, Medicare and Plan G pay 100% of Medicare-approved expenses. Medicare Part B covers medical and health services, including physician, outpatient, home health, and durable medical equipment.
Medicare Part D premiums expected to hold steady for 2024 Part D premiums are expected to fall about $1 per month to $55.50 in 2024 due to the Affordable Care Act’s focus on controlling prescription costs. Other changes to expect in 2024 to Part D coverage: • Eliminates the 5% coinsurance requirement and sets the catastrophic threshold at $8,000. That means enrollees without low-income subsidies won’t have to pay additional medication costs after they reach this threshold, which will provide significant savings for those using high-cost medications covered by Part D. • Out-of-pocket insulin costs in all Part D plans are limited to $35 per month. • Part D covers adult vaccines like the shingles vaccine provided without cost sharing.
• Medicare recipients with incomes up to 150% of poverty and resources at or below the limits for partial lowincome subsidy benefits will be eligible for full benefits under the Part D Low-Income Subsidy Program. This change eliminates the partial benefit for individuals with incomes between 135% and 150% of poverty. •Starting in 2025, Part D enrollees can spread out their out-of-pocket costs over the year rather than face high outof-pocket costs in any given month. According to the Centers for Medicare & Medicaid Services, Part D remains one of Medicare’s most popular programs, with more than 50 million Medicare beneficiaries enrolled for prescription drug coverage.
The Social Security Act sets Medicare Part B premiums, deductibles, and coinsurance rates each year. Income guidelines for 2024 also have yet to be announced but likely will hew closely to the 2023 guidelines. In 2023, Part B monthly standard premiums applied for individuals who earned $97,000 or less annually or couples earning $194,000.
Premiums increase for people with higher incomes. For example, individuals who make $97,000 up to $123,000 and couples who make more than $194,000 and up to $246,000 will pay an additional monthly premium of $65.90 for Part B and $12.20 for Part D. Individuals who make $500,000 a year or more will be charged an extra $560.50 a month for Part B and $76.40 for Part D.