Medicare beneficiaries need to be aware of the changes that will take place in 2024 and 2025. The changes begin with inflation adjustments for various features of Medicare. The basic monthly premium for Medicare Part B increased From $9.80 (or 5.94%) to $174.70 on January 1, the annual Part B deductible increased $14 to $240.
Part B rider premiums paid by higher-income beneficiaries under the Medicare Income-Related Monthly Adjustment Amount (also known as IRMAA) increased about 8%, the maximum total monthly premium is $594.00, that maximum premium will apply to individuals who had adjusted gross incomes greater than $500,000 in 2022 and to married couples whose adjusted gross incomes exceeded $750,000, there is a two-year lag between the time the income is earned and the time that lead to higher Medicare premiums.
Prepare for Possible Higher Medicare Costs in 2024
There are smaller Medicare surtaxes at lower income levels, and the surtax begins for individuals with adjusted gross incomes over $103,000 and married couples with adjusted gross incomes over $206,000, the highest-income beneficiaries also pay a surcharge on their Part D prescription drug premiums, with the maximum monthly surcharge being $81.00 at the same income levels as the Part B surcharge.
Another important change is the out-of-pocket cost limit for “catastrophic coverage” under Part D prescription drug policies; Congress is gradually closing the famous coverage gap, or donut hole, for those with expenses higher in prescription medications.
In 2023, a beneficiary was responsible for up to $7,400 in prescription drug expenses before catastrophic coverage took effect, after which the beneficiary in the catastrophic coverage range paid 5% of all subsequent expenses in prescription drugs.
Expansion of covered telehealth care extends at least through the end of 2024, the Centers for Medicare and Medicaid expanded telehealth coverage at the time of the pandemic, but it was due to expire with the end of the state of emergency of the pandemic.
The Consolidated Appropriations Act Extended Coverage Through the End of 2024
After that, unless Congress acts or CMM makes a policy change, telehealth will return to pre-pandemic restricted coverage rules.
The expanded vaccine coverage that began in 2023 is still in place.
Vaccines recommended by the Advisory Committee on Immunization Practices (ACIP, controlled by the CDC) for your age group are covered without copays, regardless of whether you are covered by Part B or Part D, extra vaccines may be covered if the committee recommends them in your circumstances.
There is a maximum copay of $35 for a 30-day supply of insulin, the $35 limit applies even if you have not met any deductible under your plan, but the limit applies only if the type of insulin you need is between the drugs covered by your plan, known as the formulary.
On the other hand, the $35 limit does not apply to diabetes control drugs that do not have insulin or that combine insulin with other ingredients, another change is the date coverage begins for those who enroll or make changes in the annual general registration period.
