Medicare open enrollment period starts October 15 and continues through December 7 each year. During this period, Medicare enrollees can make certain changes in their coverage. Here is what we know about Medicare costs for 2024.
Everyone who has Medicare coverage (Traditional Medicare or Medicare Advantage) gets Medicare Part A free, but pays for Medicare Part B.
The Centers for Medicare & Medicaid Services (CMS) hasn’t said yet how much the base cost of Part B will cost in 2024, but the annual Medicare Trustees report in March forecast the monthly price to rise from $164.90 to $174.80, a 6% increase, in 2024.
Here are a few things to keep in mind:
If you are on Traditional Medicare and plan to stay on Traditional Medicare:
You may be able to lower your annual drug costs by switching to a different Plan D. For example. there are 24 Part D drug plans in Massachusetts, and each has a different premium, deductible, co-pay, and formulary (list of covered drugs).’
To compare plans, go to the Medicare.gov site and set up your account. In the “What do you want to do?” section, select “Open all options”, then “Find health & drug plans.”
If you want to switch from Medicare Advantage to Traditional Medicare:
Some people switch from Medicare Advantage to Traditional Medicare because they don’t like the restricted network of an Advantage plan, or because frequent copays for services have become expensive.
You can switch from a Medicare Advantage plan to traditional Medicare during the Medicare Open Enrollment period, or during the Medicare Advantage Open Enrollment Period (January 1 to March 31).
If you make this change and you want drug coverage, be sure to sign up for a Medicare stand-alone prescription drug plan (Plan D), unless you have creditable drug coverage from another source. If you do not, and you decide to sign up for Part D coverage later, you may face a penalty for late enrollment.
And if you want a Medicare Supplement Plan (or Medigap Plan, which covers most out of pocket costs) you’ll need to sign up for that then, too.
In most states, Medigap insurers are not required to sell you a policy if you don’t meet the medical underwriting requirements. If you are able to enroll outside of your open enrollment period, you might have to pay higher premiums.
MA residents note, though: You can join Medicare Supplement plans without the need for medical underwriting at any time of the year in Massachusetts, and you cannot be denied coverage nor be charged more due to your age or health status.
Will I have to pay more for Medicare because of my income?
Some people pay more for Medicare Part B and Part D based on income. This additional payment is called IRMAA (Income-Related Monthly Adjustment Amount).
Your tax return for 2022 will be used to determine whether you will be subject to an IRMAA charge for 2024. If you retired in or after 2022, or had another life-changing event (e.g., marriage, divorce, death of spouse, etc.) you can file form SSA-44 to request that your IRMAA amount be reduced or eliminated.
IRMAA charges have not been released yet for 2024, but are expected to be about 6% higher than in 2023.
If you have questions or would like help evaluating your Medicare options, please let us know.
-SM