Your Medicare coverage and costs can change each year, so it’s important to understand and review your benefits. Here’s an overview of what’s new in 2024.

Let’s start with Part A costs in 2024:

Part A Premium	Free if you’ve worked 10 years or more $278 per month if you’ve worked 7.5 to 10 years $505 per month if you’ve worked fewer than 7.5 years
Part A hospital deductible	$1,632 each benefit period
Part A Hospital Coinsurance	$0 for the first 60 days of inpatient care each benefit period $408 per day for days 61-90 each benefit period $816 per lifetime reserve day after day 90 in a benefit period (You have 60 lifetime reserve days that can only be used once. They’re not renewable.)
Skilled nursing facility insurance	$0 for the first 20 days of inpatient care each benefit period $204 per day for days 21-100 each benefit period

Medicare Part A covers inpatient hospital services, skilled nursing facility services, home health care, and hospice. Most people don’t owe a premium for Part A, but if neither you nor your spouse have 10 years of Social Security work credits, you may owe a monthly premium. If you’re admitted to the hospital as an inpatient, you’ll owe a deductible of $1,632 at the beginning of your stay. If you have multiple hospitalizations, you may owe the deductible more than once. After you meet your deductible, your first 60 days in the hospital and your first 20 days in a skilled nursing facility cost $0 per day. After that, you owe an out-of-pocket cost each day for your continued stay.

And now Part B costs in 2024:

Part B premium (For individuals with incomes below $103,000 or couples with incomes below $206,000	$174.70 is the standard premium
Part B deductible	$240 per year
Part B coinsurance	20% for most services Part B covers

Medicare Part B covers outpatient costs, such as doctor visits and lab tests. In 2024, the standard Part B premium is $174.70. If your income is above $103,000 as a single person or $206,000 as a married couple, you may pay a higher premium. Keep in mind that if you have a Medicare Advantage Plan, you may also pay an additional monthly premium for being enrolled in that plan. If you have Original Medicare, you‘ll owe a Part B deductible of $240 in 2024. You’ll continue to owe a 20% coinsurance for most services covered by Part B.

Your prescription drug coverage costs will depend on your specific plan, but there are some numbers that are helpful for everyone to know in 2024:

National average premium for basic Part D benefit	Around $30 per month
Part D maximum deductible	$545 per year
Coverage gap begins	$5,030
Catastrophic coverage begins	$8,000

Medicare Part D covers outpatient prescription drugs. In 2024, the national average premium for the Part D basic benefit is around $30 per month. Your premium and drug costs vary based on your plan and your prescription drug needs. If your Part D plan has an annual deductible, it can be no higher than $545 in 2024. If you reach the catastrophic coverage phase in 2024, you then won’t owe any of the cost of your covered drugs. This is a new change and basically means that your Part D out-of-pocket spending will be capped at $8,000. This cap will be further lowered to $2,000 in 2025.

If your income is limited, you may qualify for help with your Medicare costs. Contact your State Health Insurance Assistance Program, or SHIP, to see if you’re eligible. Use our online SHIP Locator or call 877-839-2675 (and say “Medicare” when prompted) to find your local SHIP.

Remember that you have opportunities to change your coverage in 2024.

Many people must wait until Medicare’s Open Enrollment Period to change their coverage if they aren’t happy with it. You may have the opportunity to change your coverage earlier in 2024, though, depending on your circumstances. 

• If you have a Medicare Advantage Plan, you may be able to use the Medicare Advantage Open Enrollment Period (MA OEP). You can use this period to switch from your Medicare Advantage Plan to another Medicare Advantage Plan, or to Original Medicare with or without a prescription drug plan. The MA OEP is each year from January 1 through March 31. If you make a change during this period, it will be effective the first of the following month. You may only make one change, so it’s important to choose carefully if you enroll in a new Medicare Advantage or Part D plan. This will automatically disenroll you from your previous Medicare Advantage Plan.
• If you qualify for a Special Enrollment Period (SEP), you may be able to change your coverage. There are several situations when you might qualify for an SEP. For example, if you move outside your plan’s service area, if your Medicare Advantage Plan stopped working with a large amount of its network providers, or if you enroll in certain State Pharmaceutical Assistance Programs. To use an SEP, call 1-800-MEDICARE and explain your situation. If you have questions about your SEP eligibility, contact your SHIP. Use our online SHIP Locator or call 877-839-2675 (and say “Medicare” when prompted) to find your local SHIP.
• If you have Extra Help in 2024, you have an SEP to enroll in a Part D plan or switch between plans. Extra Help is a federal program that helps pay for some of your Medicare Part D costs. The Extra Help SEP is available once per calendar quarter for the first three quarters of the year, which are: January through March, April through June, and July through September. If you use this SEP to change your coverage, the change will become effective the first of the following month. 

Still have questions? 

Your SHIP is here for you! You can contact your SHIP for any Medicare-related questions or concerns you have. SHIP counselors are government funded to provide trusted, unbiased Medicare counseling at no cost to you. (Depending on your state, your SHIP may go by another name.) Use our online SHIP Locator or call 877-839-2675 (and say “Medicare” when prompted) to find your local SHIP.

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