If you’re enrolled in Medicare Part B, you may be aware of the rising premiums for the year 2024. It’s essential to stay informed about these adjustments to anticipate the increased out-of-pocket expenses you’ll incur.
Continue reading to discover the upcoming modifications to the monthly premium for Medicare Part B and understand the reasons behind the alterations in coverage and expenses for the current year.
Medicare Part B Changes
Medicare Part B provides coverage for various healthcare services, encompassing doctor visits, outpatient care, home health care, medical equipment, and other medical services typically not covered under Medicare Part A.
In October, the Centers for Medicare & Medicaid Services (CMS) unveiled revised costs for Medicare in 2024, impacting Part B premiums and coverage.
These adjustments entail updates to premiums, deductibles, and coinsurance for Medicare Part B, alongside alterations affecting Medicare Part A, as well as adjustments to income-related monthly rates for Medicare Part D premiums.
Reasons for Medicare Cost Growth
In the current year, the monthly premium for Medicare Part B will rise to $174.70, marking a $9.80 increase compared to the premium for Medicare Part B in 2023.
Additionally, the annual deductible for Medicare Part B beneficiaries is adjusting from $226 to $240, resulting in an additional payment of $14 compared to the previous year.
Each year, the costs of Medicare Part B, including premiums and deductibles, are governed by regulations delineated in the Social Security Act. Numerous factors contribute to these changes.
The predominant driver behind this year’s increase in the standard premium and deductible for Part B is the projected rise in healthcare expenses.
Alongside the anticipated surge in healthcare spending in the coming years, modifications to payment policies under the Hospital Outpatient Prospective Payment System for prescription drug coverage from 2018 to 2022 also play a role.
This initiative subsidized prescription medications dispensed by specific hospitals. However, hospitals catering to a larger proportion of disadvantaged patients encountered challenges with reimbursement rates, resulting in significant financial losses.
Consequently, the Supreme Court deemed the alterations to the drug payment policy of the Hospital Outpatient Prospective Payment System illegal. To rectify the reimbursement issues, the CMS proposed these increased payments.
