Medicare Payments 2024 and Medicare Charges for 2024
Healthcare is one of the vast industries that revolves around many changes. Many changes are coming to medicare payments in 2024. CMS (Centers for Medicare & Medicaid Services) unveiled changes on 12 October 2023 related to premium, deductible, and coinsurance details for the Medicare Part A and Part B programs and the 2024 Medicare Part D income-related monthly adjustment amounts. Furthermore, the Centers for Medicare & Medicaid Services (CMS) released a final rule on November 2, 2023, detailing confirmed policy modifications for Medicare payments within the Physician Fee Schedule (PFS) and addressing various Medicare Part B concerns. These changes are set to take effect on January 1, 2024, or later.
The Medicare Savings Programs (MSPs) are crucial in providing coverage for Medicare premiums and, in many instances, other associated expenses for over 10 million individuals. As part of their ongoing commitment to enhance healthcare accessibility and reduce costs for millions of Americans, the Department of Health and Human Services (HHS), working through CMS, has recently implemented a rule to streamline MSP enrollment. This initiative is expected to make coverage more economically viable for approximately 860,000 people.
Additionally, the Part D low-income subsidy (LIS) assists in covering the Part D premium and reducing prescription drug costs. Moreover, the recent expansion of eligibility through the Inflation Reduction Act has increased the number of individuals qualifying for the entire LIS.
Medicare Part B Premium and Deductible in 2024
Certain health and medical services are not covered by Medicare Part A but are integrated into Medicare Part B, such as physicians' services, outpatient hospital services, home health services, durable medical equipment, and more. However, annually, the Medicare Part B premium, deductible, and coinsurance rates are established under the provisions outlined in the Social Security Act.
In 2024, the standard monthly premium for Medicare Part B enrollees will be $174.70, reflecting a $9.80 increase from the 2023 amount of $164.90. The annual deductible for all Medicare Part B beneficiaries is $240 for 2024, marking a $14 rise from the previous year's deductible of $226.
The upward adjustments in the 2024 Part B standard premium and deductible primarily stem from anticipated rises in healthcare expenditure. To a lesser extent, the changes also account for adjustments related to the 340B-acquired drug payment policy for the 2018-2022 period under the Hospital Outpatient Prospective Payment System.
Commencing in 2023, individuals whose full Medicare coverage concludes 36 months post a kidney transplant and who lack specific other forms of insurance can choose to extend Part B coverage for immunosuppressive drugs by paying a premium. For 2024, the standard premium for immunosuppressive drugs is $103.00.
Medicare Part A Premium and Deductible in 2024
Medicare Part A covers inpatient hospitals, skilled nursing facilities, hospice, inpatient rehabilitation, and home healthcare services. Approximately 99 percent of Medicare beneficiaries are exempt from a Part A premium, given they have accrued a minimum of 40 quarters of Medicare-covered employment, as determined by the Social Security Administration.
In 2024, the deductible for Medicare Part A inpatient hospital stays will be $1,632, showing an increase of $32 from the 2023 amount of $1,600. This deductible encompasses the beneficiary's share of costs for the initial 60 days of Medicare-covered inpatient hospital care within a benefit period. Additionally, in 2024, beneficiaries are responsible for coinsurance of $408 per day for the 61st through 90th day of hospitalization (compared to $400 in 2023) in a benefit period. For lifetime reserve days, the coinsurance rises to $816 per day in 2024, as opposed to $800 in 2023.
For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $204.00 in 2024, compared to $200.00 in 2023.
Furthermore, those aged 65 and above with fewer than 40 quarters of coverage, along with specific individuals with disabilities, are required to pay a monthly premium to enroll in Medicare Part A voluntarily. Those with a minimum of 30 quarters of coverage or those married to someone meeting the same criteria can purchase Part A at a reduced monthly premium rate, set at $278 for 2024, maintaining the same amount as in 2023.
Individuals without insurance who are of eligible age and possess less than 30 quarters of coverage, as well as certain disabled individuals who have exhausted alternative entitlements, will be subject to the full premium. This full premium is $505 per month in 2024, reflecting a $1 decrease from the 2023 amount.
It's imperative to be updated with the new medicare billing regulations and the medicare charges for 2024 to boost revenue and improve quality patient care.
