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Changes are coming to Medicare costs and coverage in 2024, impacting both Original Medicare and Medicare Advantage beneficiaries. With the annual open enrollment period running through December 7, it’s crucial to stay informed about these updates.
“It’s essential for beneficiaries to be actively involved in their health care,” advises Darren Hotton, associate director of community health and benefits for the National Council on Aging. Neglecting to stay updated can result in higher costs.
Starting January 1, 2024, the standard Part B monthly premium will rise to $174.70, a $9.80 increase from 2023. Additionally, the annual deductible will increase by $14 to $240. Higher-income beneficiaries will also see an increase in their income-related monthly adjustment amount (IRMAA) surcharges, now ranging from $69.90 to $419.30.
What Is Medicare Part B? Medicare Part B covers outpatient care, preventive services, ambulance services, durable medical equipment, and some prescription drugs.
The average monthly premium for a Medicare Part D prescription drug plan in 2024 is expected to drop to $55.50 from 2023’s $56.49, thanks to policy changes from the Inflation Reduction Act.
What Is Medicare Part D? Medicare Part D provides prescription drug coverage and is available to anyone enrolled in Original Medicare, Medigap, or a private Medicare Advantage plan without drug coverage. Annual deductibles, monthly premiums, and drug costs vary by policy.
Additional Part D Changes:
Starting in 2024, mental health counselors and marriage and family therapists can enroll as Medicare providers. Medicare will also extend coverage for intensive outpatient programs.
Coverage Added for Chronic Pain Treatment Medicare will cover monthly services for chronic pain management, including pain assessment, medication management, and care coordination.
Medicare-covered telehealth services will continue until December 31, 2024. After that, coverage will generally be limited to rural locations, with exceptions for behavioral health services, substance use disorder treatment, and other specified conditions.
Overall, the 2024 changes aim to provide comprehensive benefits across the board. As you evaluate your options, consider Original Medicare, Medigap, or Medicare Advantage plans. Note that some Medicare Advantage plans may not be available in all states, so focus on those offered in your area.
To navigate your enrollment options, contact your local Senior Health Insurance Assistance Program (SHIP) at shiphelp.org. This free service is available nationwide, including in Washington, D.C., Guam, Puerto Rico, and the U.S. Virgin Islands. You can also enroll directly through Medicare.gov.
Steve Hepburn is a passionate financial advisor and a devout Christian, husband, and father of seven children. He is the managing partner of Drexel & Co. Financial Planning. He holds a degree in Economics, is a Certified Financial Planner (CFP), and a Registered Investment Advisor (RIA). With a strong interest in philosophy, theology, economics, and estate planning law, technology. When not running his financial planning firm, he is spending time farming a 64 acre property.
Having an honest, trusted, and knowledgeable advisor who can help you make smart decisions and create a path to your financial goals is the best way to secure your future and the future of those you care about.
*Source: CFF Board (cfp.net), February 3, 2022
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