WHAT’S NEW FOR MEDICARE DRUG PLANS IN 2024?
Medicare’s open enrollment period is officially in full swing! We’ve gotten several calls and appointments to meet with many of you as you review and make necessary changes to your plan. However, we understand how daunting and overwhelming Medicare and open enrollment can be — the terminology and moving parts cause a layer of confusion that’s hard to decipher!
Fortunately, you don’t have to travel through the Medicare maze alone — we will be there with you every step of the way and ensure you continue receiving the benefits and services you know and love. As you begin reviewing your plans and making necessary adjustments, it’s vital you’re aware of changes to your benefits for 2024.
Here’s what you need to know…
UPCOMING CHANGES TO MEDICARE PART D
If you use your drug plan to receive prescriptions and medications, you must pay close attention to upcoming changes. The first thing you should know about is the Inflation Reduction Act.
The Inflation Reduction Act was implemented to improve drug affordability for seniors and those with disabilities who have Medicare Part D. Starting in 2024, there will be a cap on out-of-pocket costs for your prescriptions. Please give us a call for more information regarding this change.
It’s also important to note that in 2025, this cap will drop to $2,000.
In addition to changes within the Inflation Reduction Act, several adjustments have been made regarding the Medicare doughnut hole, also known as the coverage gap.
If you recall, our July newsletter went in-depth about the Medicare doughnut hole. But if you need a refresher, when you use Medicare Part D, you’re required to meet a deductible. You will enter the doughnut hole once you and your plan reach the amount you’re supposed to pay.
In 2024, your deductible will increase to $545, a $40 increase over what you paid in 2023.
Similarly, if you and your plan paid $4,660 this year, you would enter the doughnut hole. However, you must pay $5,031 next year to enter the coverage gap. When you’re in the doughnut hole, the max limit you pay out-of-pocket will increase to $8,000. Once you reach this limit, you will exit the coverage gap and enter catastrophic coverage. For this phase, there will be $0 out-of-pocket costs for 2024.
PREMIUM INCREASE LIMITS
You will typically pay a monthly premium for your Medicare coverage and part of the costs every time you receive a coverage service. In 2023, the average monthly premium for Medicare Part D was $32.74. However, the premium will increase to no more than 6% — which is $1.96 more than what you’re paying now!
Although there are a few increases, these changes are meant to reduce your costs and be an improvement for beneficiaries. However, we understand there may still be some confusion regarding these modifications.
If you or someone you know needs to review their Medicare coverage and benefits or need assistance making updates, allow us to assist you! Please contact us at any time with questions or concerns. Or if you just want to call and say, “Hey!” we would love that, too!
