Understanding these changes is crucial for beneficiaries seeking comprehensive healthcare coverage. In this article, we’ll explore the most notable modifications on the horizon, providing valuable insights into the evolving realm of Medicare.
As expected, the new year is bringing new changes to Medicare, a health insurance program mostly for people aged 65 and older. You can get a better understanding of Medicare at https://boomerbenefits.com/understanding-medicare/
The changes include new premiums and deductibles. These numbers typically change each year, so this comes as no surprise.
Medicare Part A
Most people qualify for premium-free Part A, while others must pay a premium. The 2024 Part A premium for those who must pay is $505 or $278, depending on the number of work quarters someone has. The new Part A deductible in 2024 is $1,632. Fortunately, a Medigap will cover the Part A deductible.
Medicare Part B
Unlike Part A, almost everyone is responsible for paying the Part B premium. In 2024, the new standard Part B premium will be $174.70. However, people whose income level falls within specific brackets will pay more for Part B. Those brackets have also changed for the new year. This is known as an Income Related Monthly Adjustment Amount (IRMAA) charge.
Medicare Part D
The IRMAA brackets for Medicare Part D have also changed for the upcoming year. However, there is no standard Part D premium like Part B. IRMAA charges are in addition to a beneficiary’s Part D plan premium, which varies from policy to policy.
Inflation Reduction Act
In August 2022, the Biden administration passed the Inflation Reduction Act (IRA) aimed to revise and update certain areas of the Medicare program. The IRA will administer changes through 2029 and beyond for specific policies.
Catastrophic Phase Elimination
In 2024, there are a few changes taking place. First, starting on January 1, 2024, Medicare will eliminate the catastrophic phase of the Part D program. This means people who reach the catastrophic phase will no longer have to pay copayments or coinsurance for medications covered by Part D.
Part D Premium Stabilization
Another notable change coming to 2024 is that most Part D plans cannot increase their premiums by more than 6% for the year. 2024 is also the first year that drug negotiations will be announced for 10 Part D medications. These negotiations are set to take effect in 2026.
New Prescription Drug Law
A new law has been passed to expand the low-income subsidy requirement. Doing so will allow more people to qualify for the full low-income subsidy and receive more financial assistance under Medicare’s Extra Help program for Part D medications. This new law will take effect on January 1, 2024.
Cap on Biosimilars
A new cap is also set for biosimilar medications covered under Part B. Starting in July 2024, the payment for biosimilars cannot exceed the cost of the reference biological.
Expansion of Telehealth Services
The ongoing global shift towards virtual healthcare has accelerated the adoption of telehealth, and Medicare is working to embrace this trend. One of the most anticipated changes in 2024 is the continuation of certain telehealth services through the end of 2024. Medicare is choosing to make certain telehealth care permanent past 2024 as well.
Temporary services for 2024 allow beneficiaries to receive both behavioral and non-behavioral mental health services within their home. However, after 2024, there may be some limitations.
Chronic Pain Management and Treatment
Another new addition to Medicare in 2024 is that Medicare will now cover monthly care for those needing treatment for chronic pain. The coverage will apply to beneficiaries experiencing chronic pain for at least three months. The newly covered care can include medication management, pain assessments, and more.
Just know that the annual Part B deductible will apply first. After beneficiaries meet the deductible, they will be responsible for 20% of the costs. Once again, if someone has a Medigap plan, that plan will help cover some or all the 20%.
Inflation Reduction Act & Healthcare with Dr. David Wilcox(Opens in a new browser tab)
Conclusion
As we look towards 2024, the changes coming to Medicare reflect a commitment to adapting and improving the healthcare landscape for beneficiaries. From expanding telehealth services to revisions in prescription drug coverage, these changes aim to address the evolving needs of an aging population.
Beneficiaries are encouraged to stay informed, explore their options, and consider how these changes may impact their individual healthcare journey. As Medicare continues to evolve, navigating the complexities with knowledge and foresight will be key to ensuring a seamless and effective healthcare experience.
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