How much are Medicare premiums and deductibles in 2024?
As most seniors live on a limited budget, the costs of Medicare are a major concern for most seniors. Because of the steadily increasing health care costs, the government keeps increasing Medicare premiums while reducing the benefits. This post outlines briefly the premiums and deductibles which seniors have to pay out of pocket, and discusses the alternatives to traditional Medicare.
Medicare has four areas of coverage: A, B, C and D
Medicare Part A relates to hospital expenses. For most persons, there is no monthly premium for Part A. If a beneficiary is admitted to a hospital, Medicare will pay for all hospital expenses for the first 60 days after a $1,632 deductible, from days 61 to 90 the senior has to pay $408 per day co-insurance, from days 91 to 150 the senior pays $816 per day co-insurance and after 150 days the senior pays 100% co-insurance.
Medicare Part B covers doctor’s visits and outpatient treatments, including lab test, x-rays, and similar services. The monthly premium for Part B in 2024 is for most persons $174.70, usually deducted from your social security check. This increases when your income exceeds specific limits, or you don’t get Social Security benefits or enroll in Medicare Part B for the first time in 2024. The current annual deductible for part B is $240 per year. More information can be found at https://www.medicare.gov/your-medicare-costs/medicare-costs-at-a-glance.
Under part B medicare will pay only 80% of the cost and the insured has to pay the additional 20% out of pocket.
Part C (Medicare Advantage): Under Part C, a senior on Medicare is allowed to enroll with one of many private insurance carriers. These plans, also called ‘Medicare Advantage’ or MAP will help fill in the gaps where Medicare leaves off. Monthly premiums for advantage plans are relatively low or even zero. However, under a Medicare Part C plan, you will also have deductibles and co-payments. To curb the costs, Medicare advantage plans typically are run as group health insurance – typical as PPO’s and HMO’s – where the carrier dictates the provider of your medical care.
Medicare Part D relates to prescription drug coverage. These drug plans are designed to reduce drug costs for the insured and protect against catastrophic drug costs. Their costs vary by plan.
As traditional Medicare as described above does not cover all the costs, you have the options to add additional coverage to your Medicare with Supplemental Insurance: A number of private insurance carriers offer Medicare supplemental coverage. Medicare supplement plans fill in the gaps that Medicare does not pay under Part A and Part B. In others words, supplemental helps pay for the co-payments and deductibles for Part A and Part B that a senior has to cover out of pocket.
Supplemental Insurance versus Medicare Advantage coverage: As stated above, Part C coverage provided by a private insurance company is administered much like group insurance with a network of doctors you must use, as well as co-pays and deductibles. Supplemental plans on the other hand give you the free choice of your doctor as long as he accepts Medicare. The different ‘Medigap’ plans A through N vary in coverage, and the monthly supplement premium is based on the plan you select. You may find Medigap plans that pay all the cost Medicare does not cover, and plans with an annual deductible. Of course, the more benefits your plan will provide, the higher your premium.
Most seniors qualify for Medicare supplement and advantage plans, so if you are turning 65 make sure to check out the various options that are available on the market.
Keep in mind that Medicare is a complex subject and critical to any senior, so it is a good idea to consult with a licensed insurance professional in your state to learn which alternatives are available and best for your medical needs.
