Projected 2024 Medicare Premiums

Projected 2024 Medicare Premiums

September 15, 2023

As part of our financial planning for clients, we factor in health care costs into both cash flow projections for future spending as well as into tax projections to asses future costs down the road.

Here's the latest information on Medicare costs projected for 2024. We'll know more in a few months.

Starting in 2024, Medicare Premium costs will be changing -- Medicare Part B costs are expected to get more expensive, while Medicare Part D prices are projected to decrease. We'll tell you how much below.

Each year, the Social Security Administration determines what the costs associated with the Medicare program will be. It then either raises or lowers premiums and deductibles using rules set out in the Social Security Act.

Here's how much prices could change if you receive Medicare Parts B and D. In addition, if you receive Social Security, here's how much the COLA increase is expected to be next year. 

Medicare Part B is likely increasing in 2024

Due to a new Alzheimer's treatment coming to the market (Leqembi, from pharmaceutical companies Eisai and Biogen), Medicare beneficiaries are expected to pick up the cost. Therefore, Medicare Part B prices are expected to increase in 2024. The costs are projected to go up from the current $164.90 to $174.80, a nearly $10 increase per month. 

Leqembi is a treatment for those in the early stages of Alzheimer's disease.

How much less could Medicare Part D cost in 2024?

While you may not see a huge difference in the amount you're paying for Medicare Part D, it still could be slightly lower. The average total monthly Part D premium is projected to decrease from $56.49 in 2023 to $55.50 in 2024, according to the Centers for Medicare & Medicaid Services (CMS). That's nearly $10 each month. 

Here's how it works according to the CMS: "The average total Part D premium is the sum of the average basic premium and the average supplemental premium for plans with enhanced coverage and is the most accurate current projection of what people will pay in 2024 for Part D premiums."

It's decreasing due to premium stabilization -- 2022's Inflation Reduction Act (IRA) redesigns Medicare Part D and provides a mechanism to limit premium increases for people enrolled in Medicare Part D -- and an improved Basic Part D benefit -- by capping annual out-of-pocket costs, limiting cost-sharing for covered insulin products and eliminating cost-sharing for recommended adult vaccines in 2024.