Medicare Advantage premiums are expected to remain stable in 2024, with a projected increase of just $0.64 to reach $18.50 per month. CMS assures beneficiaries that plan choices and supplemental benefits will expand. Enrollment in Medicare Advantage is projected to rise, increasing the share of beneficiaries enrolled from 48 percent to 50 percent. Additionally, Medicare Part D premiums are anticipated to decrease, with lower drug costs. Various support programs, like the Low-Income Subsidy Program, will offer additional financial assistance. The CMS Innovation Center’s VBID Model will provide improved access to supplemental benefits, including palliative care.
The Centers for Medicare & Medicaid Services (CMS) has released promising projections for Medicare Advantage premiums in 2024, bringing good news for beneficiaries. According to CMS, the average monthly premium for Medicare Advantage plans is set to increase by a mere $0.64, reaching a reasonable $18.50 per month.
With the Medicare Open Enrollment Period around the corner, CMS emphasizes that Medicare Advantage premiums, benefits, and plan choices will remain relatively unchanged in the coming year. CMS Administrator Chiquita Brooks-LaSure conveyed the agency’s commitment to safeguarding and enhancing the Medicare program, ensuring its longevity for current and future generations. She urged individuals with Medicare to take this opportunity to review their healthcare coverage and explore the Medicare options available to them.
Brooks-LaSure also highlighted the Biden-Harris Administration’s efforts to enhance both Medicare Advantage and the Medicare Part D prescription drug program, assuring that premiums and benefits for Medicare Advantage in 2024 would remain consistent.
The projected increase in Medicare Advantage average monthly plan premiums amounts to just $0.64, a slight rise from $17.86 in 2023 to $18.50 in 2024. Importantly, beneficiaries who opt to stay in their current plan will experience minimal or no premium increases, with approximately 73 percent of individuals seeing no change.
CMS further disclosed that the selection of Medicare Advantage plans will expand, offering beneficiaries more choices, and the scope of supplemental benefits will grow in the upcoming year.
The agency anticipates a surge in Medicare Advantage enrollment, going from 31.6 million in 2023 to 33.8 million in 2024. This increase will raise the proportion of Medicare beneficiaries enrolled in Medicare Advantage from 48 percent to 50 percent.
In a separate announcement made in July, CMS revealed that the average monthly premium for Medicare Part D coverage is expected to drop to $55.50 in 2024, marking a 1.8 percent decrease from the $56.49 recorded in 2023. Additionally, Part D beneficiaries can look forward to reduced drug costs, thanks to provisions in the Inflation Reduction Act, including a $35 cost-sharing limit for a month’s supply of covered insulin products.
Beneficiaries may also benefit from additional financial assistance through programs such as the Medicare Savings Program and the Low-Income Subsidy Program. In 2024, the Low-Income Subsidy Program is expanding, offering eligible beneficiaries a deductible-free, premium-free option, along with lower fixed copayments for specific medications.
While Medicare Advantage premiums hold steady, over 1,500 plans representing 8.7 million beneficiaries are poised to participate in the CMS Innovation Center’s Medicare Advantage Value-Based Insurance Design (VBID) Model in 2024. This model enhances access to supplemental benefits designed to address social determinants of health, particularly for individuals dealing with chronic conditions or limited incomes.
Furthermore, nearly 80 Medicare Advantage plans are set to include the VBID Model’s Hospice Benefit Component, which enhances access to palliative and integrated hospice care. These developments aim to provide comprehensive and accessible healthcare options to Medicare beneficiaries in the coming year.
