Medicare premiums and deductible amounts for 2024

Dear Toni: I recently enrolled in Medicare and received my 2024 “Medicare and You” handbook. I cannot find what the 2024 costs will be. Do you have any idea what they are? — Cindy, Conroe, Texas

Dear Cindy: Every year the “Medicare and You” handbook is mailed out before Oct. 1 to all Medicare beneficiaries to help guide them through the annual enrollment period (Oct. 15-Dec. 7). The handbook states that, at the time of printing, premiums and deductible amounts were not available.

The 2024 Medicare premiums and costs were released Oct. 12, with an increase for Parts A and B. Below are the 2024 amounts, as well as information on changes that affect Medicare’s Part D prescription drug costs:

■ The Part A inpatient hospital deductible will increase $32 to $1,632 for 2024. The Part A deductible starts over every 60 days — it is not a once-a-year deductible but six per year. Medicare skilled nursing is covered by Part A, and the 2024 costs will be $0 copay per day for days 1 to 20 and $204 per day for days 21 to 100.

■ The Part B medical/doctor deductible will increase $14 to $240 beginning Jan. 1. After the deductible is met, Medicare pays 80 percent of the Medicare-approved amount and the Medicare beneficiary pays the remaining 20 percent.

■ Part B premiums will increase by $9.80 to $174.70 beginning Jan. 1 for those making less than $103,000 as an individual or $206,000 as a couple. Beneficiaries who make more than that amount can find the 2024 Part B premium table at cms.gov.

■ Initial Part D deductible will increase by $40 to $545 in 2024.

■ Initial Part D coverage limit will increase by $370 to $5,030 in 2024. “Doughnut hole” (coverage gap) begins once you reach your Part D plan’s initial coverage limit of $5,030 and ends when you spend a total of $8,000 out of pocket.

What is the doughnut hole discount? Part D enrollees receive a 75 percent discount on the total cost of their brand- name/generic drugs purchased while in the so-called doughnut hole. The discount includes 70 percent paid by the brand- name/generic drug manufacturer and 5 percent paid by the enrolled Medicare Part D plan.

The Medicare beneficiary will be responsible for only 25 percent of the prescription drug cost until they reach the doughnut hole exit point ($8,000). To control Medicare Part D prescription drug costs, ask your medical provider which brand-name drugs can be changed to generics.

■ Part D catastrophic coverage will be $0 out of pocket in 2024. When a Medicare recipient enters catastrophic coverage, then Medicare will pick up all cost of the prescriptions whether brand name or generic, and those with a Part D plan pay $0.

The Medicare Part D cycle begins again with a new deductible and copays on Jan. 1 of every year.

Toni King is an author and columnist on Medicare and health insurance issues. If you have a Medicare question, email info@tonisays.com or call 832-519-8664.