For Medicare Part C, you may see a change in the amount you pay for your premium, deductible, and copay in the next year. We’ll look at Medicare Part C and some of the cost changes you can expect in 2024. 

What is Medicare Part C? 

Medicare Part C is also known as Medicare Advantage. Private insurers offer these plans as an alternative option to Original Medicare. Part C plans must provide coverage comparable to that provided by Medicare Parts A and B. In addition, insurers may also offer coverage for other services and procedures that Original Medicare doesn’t cover, like vision and dental care. There are many types of Medicare Advantage plans that may or may not require a copay in addition to the Part B copay. 

Let’s take a closer look at the costs associated with Medicare Part C. 

What were the average Medicare Part C costs in 2023? 

Medicare Advantage (Part C) plan costs differ from Original Medicare plans in many ways. For example, Medicare Advantage plans usually cap your out-of-pocket costs.

• In 2023, according to Kff, the average premium cost for a Medicare Advantage plan was between $14 and $46 per month. This premium is in addition to the Part B premium. However, many people pay $0, and some pay much more than $46. Where you live can have a significant effect on the plans available, resulting in higher or lower premiums for those plans. 

Do I still have to pay the Medicare Part B deductible? 

In 2023, the Original Medicare Part B deductible is $226. And in 2024, this deductible is projected to decrease to $240. But if you have a Part C (Medicare Advantage) plan, then your deductible can potentially be much higher depending on the plan you select. Some plans may offer a low or zero copay with a high deductible. In contrast, others feature a low deductible or even no deductible at all and more substantial copay or coinsurance rates. While Medicare requires Medicare Advantage plans to offer comparable coverage, private insurers are free to set their own pricing. 

Medicare Advantage insurance costs in 2024 

It is possible that your Medicare Advantage plan cost will change from year to year. The Centers for Medicare and Medicaid (CMS) have announced several changes that may affect your Part C costs in 2024.

Medicare Advantage 2024 premium

On average, CMS says the projected average Medicare Advantage premium for 2024 is $18.50 per month, compared to $17.86 in 2023. On the other hand, the federal government caps the current maximum out-of-pocket cost (MOOP) that you must pay for Medicare Advantage. In 2023, that cap is $8,300 but will rise to $8,850 in 2024.  

Medicare has updated Medicare Advantage plan cost information for 2024 plans on the cms.gov website since September 26, 2023, and the Open Enrollment, also known as the Annual Enrollment Period (AEP), begins on October 15.

Medicare Part B premium in 2024

People with Medicare Advantage plans must pay their Medicare Part B premium. The Medicare Part B monthly premium will increase by $9.80 in 2024 to $174.70.

Comparing Medicare Advantage insurance costs

If you already have a Medicare Advantage plan, you will soon receive notice if there are any changes to your plan, including costs or coverage. Your insurance provider must mail this notice to you each year by September 30, so you have time to prepare for the Open Enrollment if you are thinking of changing plans. 

You can compare side by side your current plan to a new plan for costs and other coverage in the Medicare Personal Shopper. This tool will allow you to enter your current plan and compare it against the new plans for 2024, while the medicare.gov plan finder will only allow you to compare across different Medicare Advantage plans.

Looking forward to 2024 Medicare Advantage plans 

Enrollment in Medicare Advantage plans has increased significantly in recent years, with nearly half of all Medicare recipients now currently enrolled in a Part C plan. Enrollment is expected to continue to shift toward Medicare Advantage, and many experts believe that competition will continue to improve the plans that insurers are offering.  

Recipients may see additional benefits at no extra cost, or they may see a slight reduction in their Medicare Advantage plan cost. However, every plan and private insurer is different, and it’s crucial that people shopping for a Part C plan consider all the costs and benefits associated with each plan. If you have received your Annual Notice of Change and are hoping to change plans, you can do so between October 15 and December 7 during the AEP.  

Article updated on October 27, 2023