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On September 26th, information on premiums, benefits, and plan choices for Medicare Advantage and Medicare Part D prescription drug program was released by CMS in preparation for the upcoming Medicare Open Enrollment starting on October 15th.
There is a slight increase in the monthly plan premium for all Medicare Advantage plans.
The average Medicare Advantage premium in 2023 is $17.86, but in 2024 it will be $18.50 (a 64¢ increase). But if enrollees choose to stay in their current plans, they will likely not see any price increases.
The average total premium for Medicare Part D coverage, on the other hand, will reduce from $56.49 in 2023 to $55.50 in 2024 (a 99¢ decrease).
Through the Inflation Reduction Act and, most recently, the Budget for Fiscal Year 2024, the Biden administration has consistently tried to reduce the price of prescription drugs.
Naturally, many Americans have reacted positively to the government’s efforts. CMS estimates that in 2024, approximately 50% of all people enrolled in Medicare will be using Medicare Advantage. This rate will most likely increase without significant changes to the status quo, and the 2024 premiums try to keep things stable.
Medicare Part D enrollees will continue to enjoy benefits like receiving recommended adult vaccines at no cost, a cap on out-of-pocket costs for people with high drug costs in the catastrophic phase, and a $35 cost-sharing limit on monthly supplies of each covered insulin product. This is, again, all thanks to the Inflation Reduction Act, which is expanding the Low-Income Subsidy Program or Extra Help to help enrollees save almost $300 annually.
Since almost 3 million seniors and people with disabilities who could be benefiting from Extra Help currently aren’t, those who enroll in the Medicare Savings Programs (MSPs) will automatically qualify for the program to afford their prescription drugs. MSPs help pay Medicare premiums and may also pay for Medicare deductibles, coinsurance, and copayments.
The CMS announcement also clarified that from 2024, over 1,500 Medicare Advantage plans will be eligible to participate in a special CMS Innovation Center Model. Called the Medicare Advantage Value-Based Insurance Design (VBID), this model will test the effect of individual-centered benefits for about 8.7 million people.
The belief is that individual-centered innovative benefits are essential to improve health equity and meet specific healthcare needs across the board. The model will expand access to previously ignored benefits, like food and nutrition, but aims to be flexible enough to primarily assist those with severe conditions or low incomes.
