Read This Before Automatically Renewing Your Medicare Plan for 2024
Fact checked by Nick Blackmer
Key Takeaways
Medicare Open Enrollment runs October 15 through December 7 for coverage that begins January 1, 2024.
During open enrollment, Medicare beneficiaries can change their basic Medicare, Medicare Advantage, and Medicare Part D plans for coverage the following year.
Ahead of enrollment, pay attention to any notices from your current plans for information on changes to coverage.
If you’re already a Medicare member, you can retain your plan for 2024 without doing a thing this Open Enrollment period. But you’re probably going to want to review your options. You’re more likely to save money on medications and access doctors and hospitals you prefer if you make a couple of changes.
“We know that people tend to just pick a plan when they first sign up for Medicare and then, more often than not, just stick with it,” licensed health insurance agent Louise Norris told Verywell. “But it’s always in your best interest every year to check prices and benefits and what other plans may be available.”
Open Enrollment runs from October 15 until December 7, 2023, with coverage changes taking effect January 1, 2024. If you are new to Medicare, your Open Enrollment period runs three months before to three months after your 65 birthday, with some exceptions.
Here’s what you need to know.
Medicare Cost Changes for 2024
Insurance costs change each year, and there are some new Medicare costs for 2024, Emily Whicheloe, education director for the Medicare Rights Center, told Verywell.
Lower Part D Premiums
The average Part D monthly premium—the amount you have to pay each month for your plan—is expected to decrease from $56.49 in 2023 to $55.50 in 2024, according to the Centers for Medicare and Medicaid Services (CMS). The maximum deductible—the amount of money you need to spend on covered services before insurance starts to pay—is $545, up from $505 last year, says the National Council on Aging. However, because deductibles vary across different Medicare Part D drug plans, some will have no yearly deductible at all.
What Is Medicare Part D?
Medicare Part D is a supplement to Medicare that covers prescription drugs that older adults take at home. In addition to their monthly premiums, those enrolled in Medicare Part D pay a portion of the cost of most prescription drugs they need.
Slight Increases for Part B
According to CMS, the standard monthly premium for Medicare Part B enrollees will be $174.70 for 2024, an increase of $9.80 from $164.90 in 2023. The annual deductible for all Medicare Part B beneficiaries will be $240 in 2024, an increase of $14 from the annual deductible of $226 in 2023.
What Is Medicare Part B?
Medicare Part B helps pay for medically necessary outpatient and physician services or drugs, like chemotherapy.
Higher Out-of-Pocket Max for Medicare Advantage
The Medicare Advantage Plan maximum out-of-pocket limit (MOOP) will be $8,850, a $550 increase from 2023. That means you may need to spend more of your own money on copays, tests, and various bills for covered services before your plan kicks in to cover 100% of costs. However, some plans may set their maximums lower.
What Is Medicare Advantage?
Medicare Advantage plans are private plans you can enroll in instead of original Medicare, and are often specific to where you live. They include added benefits that standard Medicare does not include, such as hearing and vision.
‘Extra Help’ Prescription Program Gets an Expansion
This year, depending on an individual’s income and assets, they may qualify for either full or partial coverage from a program called Extra Help, a federal service that helps pay most or some of the out-of-pocket costs of Medicare prescription drugs.
Medicare beneficiaries with incomes below 150% of the federal poverty level (which will be published in early January) and assets within the partial Extra Help limits can receive the full Extra Help benefit. Those with full Extra Help will pay a low premium or no premium for their drug plan and a $0 deductible.
The full Extra Help copays are increasing slightly from 2023: $4.50 for generic drugs (up from $4.15), and $11.20 for brand-name drugs (up from $10.35).
For those on Medicaid as well as Medicare, drug copays will be even lower, Whicheloe said.
New From 2023
Some important changes from 2023 remain in effect for 2024. For instance, copays for covered insulin products are limited to $35 a month in both Part D and Part B plans.
Vaccine coverage from 2023 is carrying over, too. For people with Medicare prescription drug coverage—either through Part D or as part of a Medicare Advantage Plan—most vaccines should be covered at no cost to the beneficiary. This includes the shingles vaccine and the new RSV vaccine.
Quick Tips for EnrollmentDon’t Ignore Your Mail
Pay attention to any notices or emails you receive from your 2023 coverage plans, Whicheloe said. An Annual Notice of Change will contain information about costs and covered services for 2024. “Review the notice to learn if there are any changes to your plan’s premiums, deductibles, copayments, and coinsurances,” she added.
You should also check the notices for any changes to covered drugs.
“Each year, plans may make changes to the formulary, which is the plan’s list of covered drugs,” Whicheloe said. “Beneficiaries should make sure that all of their drugs will be covered, or on the plan’s formulary, in 2024. They can also contact a plan directly to learn if their drugs are covered in 2024.”
Check If Your Providers Are Still Covered
If you have any preferred doctors, clinics, or hospitals that you want to continue using, make sure they are in-network for any new Medicare plan you consider.
Compare Drug Prices at Your Local Pharmacies
One thing that people often forget to do is check prices at pharmacies, which can vary and change each year.
“Even if you stick with last year’s drug coverage plan, you may want to check drug prices in your area and switch pharmacies, since that can save you money,” Norris said. Medicare’s plan finder tool can help you compare costs at different pharmacies.
What This Means For You
Even if you are happy with your current Medicare plan, experts says you should review other plan options for 2024. Plans can change and stop offering benefits or cost savings that they did in the past year, and you could save money or get more benefits by switching plans. A good resource for one-on-one, unbiased help is the State Health Insurance Assistance Program (SHIP), where representatives can answer your questions. Go to www.shiphelp.org or call 877-839-2675 to contact their local SHIP.
Read the original article on Verywell Health.
