Medicare Basics in 2024: Why You Should Brush Up on What’s Changed Since You Last Looked

Key Takeaways

• It’s crucial to stay informed about Medicare changes, especially as policies and costs may shift each year, impacting your healthcare choices in 2024.
• Familiarizing yourself with new Medicare rules and updates ensures that you are maximizing your benefits while avoiding unexpected costs.

Why Should You Care About Medicare Changes in 2024?

Medicare may seem like something you only need to learn about once, but that’s a dangerous misconception. If you’re already enrolled or are approaching eligibility, brushing up on the latest updates for 2024 is essential. Changes in the cost of premiums, deductibles, and copayments can affect your finances, while new rules and policies can impact your coverage. The more you know about these changes, the better equipped you’ll be to make smart decisions for your healthcare.

Medicare is not static—it evolves annually. Each year brings about alterations that could impact both current enrollees and those considering enrolling. This year, 2024, is no exception. Let’s delve into what you should keep an eye on and why it’s important to review your Medicare options regularly.

What Has Changed in Medicare for 2024?

Cost Adjustments: Premiums, Deductibles, and Copayments

Each year, the Centers for Medicare & Medicaid Services (CMS) adjust Medicare Part A and Part B premiums, deductibles, and copayments. These changes can affect your monthly healthcare budget.

• Medicare Part A: This covers hospital insurance and is typically premium-free if you or your spouse have worked and paid Medicare taxes for at least 10 years. However, for those who don’t qualify for premium-free Part A, premiums may rise each year. In addition, the inpatient hospital deductible can increase, affecting out-of-pocket costs during hospital stays.

• Medicare Part B: Most enrollees will notice that premiums and deductibles for Part B, which covers doctor visits and outpatient services, typically change annually. For 2024, there’s been an adjustment in the standard monthly premium and the annual deductible.

Since both of these parts may see cost increases, it’s a good idea to review your monthly and yearly financial expectations. Higher premiums or deductibles could mean you need to adjust your budget accordingly.

How Does Medicare Advantage and Part D Coverage Differ in 2024?

Medicare Advantage plans (also known as Part C) and Prescription Drug Plans (Part D) are other critical components that change from year to year. These plans are offered through private companies, and while I won’t go into specific costs, it’s important to know that costs and benefits can vary widely depending on the plan.

• Medicare Advantage Plans: Each year, Medicare Advantage plans may alter their coverage options, network of providers, and costs. It’s critical to compare plans if you’re considering changing coverage, as the out-of-pocket maximums, premiums, and copays for services can change significantly.

• Part D Prescription Drug Plans: Your prescription drug plan may adjust its formulary (the list of drugs it covers), the pricing tiers for medications, and the preferred pharmacies. These changes could mean that a drug you’ve been taking regularly might be more expensive, or you might need to switch pharmacies to keep your costs down.

By reviewing your Medicare Advantage and Part D plans annually, you can ensure that your plan still meets your needs for 2024.

Will There Be Changes to Medicare Enrollment Periods?

One of the most critical things to stay on top of are Medicare’s enrollment periods. Missing an enrollment window could result in penalties or gaps in coverage. The main periods to keep in mind are:

• Initial Enrollment Period (IEP): This is your first chance to sign up for Medicare, typically starting three months before your 65th birthday and ending three months after. It remains the same in 2024, but always check to confirm the dates that apply to you.

• General Enrollment Period (GEP): If you missed your Initial Enrollment Period, the General Enrollment Period runs from January 1 to March 31 every year. Enrolling during this time means your coverage will start later, on July 1.

• Open Enrollment Period (OEP): From October 15 to December 7 each year, Medicare beneficiaries can switch between Original Medicare and Medicare Advantage or change their Part D drug plan. This period is crucial if you want to adjust your coverage for the next year.

• Medicare Advantage Open Enrollment Period: Between January 1 and March 31, you can switch from one Medicare Advantage plan to another or revert to Original Medicare. Be mindful of this if you’re unsatisfied with your plan’s performance or coverage in 2024.

Keeping track of these timelines ensures that you don’t face penalties or lose out on the best coverage available to you.

How Does Inflation Impact Medicare Costs?

Inflation affects everything, and Medicare is no exception. In recent years, we’ve seen increased healthcare costs due to inflation, and this will likely continue in 2024. Rising medical costs mean higher premiums, increased out-of-pocket expenses, and changes to what services are covered. Although Medicare works to keep its coverage affordable, you might see changes in what’s covered or how much certain services cost.

The inflationary pressure on prescription drug costs is another area of concern. Prescription drug pricing can fluctuate, and even with Part D coverage, the price of certain medications can rise year over year. Ensuring that your Medicare drug plan provides adequate coverage for your current prescriptions is crucial.

Should You Revisit Your Medicare Choices Every Year?

Yes, you absolutely should. Many people sign up for Medicare and assume they’re set for life, but healthcare needs and Medicare itself are constantly changing. Whether you are an existing Medicare beneficiary or about to enroll for the first time, reviewing your coverage options every year is a smart move.

It’s tempting to stick with what you know, but as your healthcare needs evolve, the same coverage may no longer be the best option for you. For instance, if you were relatively healthy when you signed up but have since developed a chronic condition, you might need more extensive coverage. On the other hand, if you’ve become more cost-conscious, you may want to look for a plan with lower premiums and adjust for higher out-of-pocket costs.

What Should You Look for When Reviewing Medicare in 2024?

As you review your Medicare options for 2024, here are a few things to keep in mind:

1. Check Your Network: If you’re enrolled in a Medicare Advantage plan, make sure your preferred doctors and hospitals are still in your plan’s network. Changes to provider networks can happen, and you don’t want to be surprised by out-of-network costs.

2. Review Drug Coverage: Your Part D plan may change which drugs are covered or adjust the pricing tiers for medications. Ensure that your medications are still covered, and compare the costs at different pharmacies.

3. Understand Your Out-of-Pocket Limits: Medicare Advantage plans have out-of-pocket maximums, which can change each year. Be aware of what your maximum exposure could be if you have high healthcare expenses.

4. Evaluate New Benefits: Some Medicare Advantage plans offer extra benefits, like dental, vision, or hearing coverage. Review these changes, as they could impact your healthcare experience in 2024.

Staying Informed Will Save You in the Long Run

Medicare may seem complicated, but keeping up with yearly changes will help you stay in control of your healthcare. Don’t let new rules or cost adjustments catch you off guard. Make reviewing your coverage an annual habit, and you’ll be in the best position to maximize your benefits while minimizing your costs. Whether it’s adjusting your plan, reviewing your prescription drug coverage, or budgeting for higher premiums, staying informed is the key to a stress-free Medicare experience in 2024.