Medicare Advantage and Prescription Programs to Remain Stable in 2024

The Centers for Medicare & Medicaid Services (CMS) has announced that average premiums, benefits and plan choices for Medicare Advantage and the Medicare Part D prescription drug program will remain stable in 2024.

Improvements adopted in the 2024 Rate Announcement, as well as the 2024 Medicare Advantage and Part D Final Rule support this stability. CMS works to ensure these programs work for people enrolled in Medicare, that benefits remain strong and stable, and that payments to plans are accurate.

Additionally, because of the Inflation Reduction Act, people with Medicare Part D prescription drug coverage will continue to have improved and more affordable benefits, including a $35 cost-sharing limit on a month's supply of each covered insulin product, recommended adult vaccines at no cost, and additional savings on their Medicare Part D drug coverage costs in 2024.

These savings include the expansion of the Low-Income Subsidy program, also called Extra Help, which helps eligible enrollees afford their premiums and cost-sharing, as well as a cap on out-of-pocket costs for millions of people with very high drug costs in the catastrophic phase of the Part D benefit.

"A top priority for CMS is to protect and strengthen the Medicare program for people with Medicare, their children, and their grandchildren," said CMS Administrator Chiquita Brooks-LaSure. "It is important for people with Medicare to review their health care coverage and explore their Medicare options during Open Enrollment."

The average monthly plan premium for all Medicare Advantage plans, which includes Medicare Advantage-Prescription Drug plans, is projected to change from $17.86 in 2023 to $18.50 in 2024 (an increase of $0.64).

If enrollees choose to stay in their plan, most will experience little or no premium increase for next year, with nearly 73% of beneficiaries not seeing any premium increase at all. Plan choice is also increasing, and people with Medicare continue to have the ability to switch Medicare options. Medicare Advantage supplemental benefit offerings will increase slightly in 2024.

Enrollment in Medicare Advantage is projected to increase from 31.6 million in 2023 to 33.8 million in 2024. The projected Medicare Advantage enrollment in 2024 will represent approximately 50% of all people enrolled in Medicare, compared to approximately 48% for 2023.

CMS previously announced that the average total monthly premium for Medicare Part D coverage is projected to be approximately $55.50 in 2024. This expected amount is a decrease of 1.8% from $56.49 in 2023.

Stable premiums for Medicare Part D prescription drug coverage in 2024 are accompanied by improvements to the Part D program made by the Inflation Reduction Act that allows people with Medicare to benefit from reduced costs in 2024.

Medicare Open Enrollment ends on December 7. Until then, people eligible for Medicare can compare 2024 coverage options with the Medicare Plan Finder at http://www.Medicare.gov, which provides clear, easy-to-use information allowing people to compare options for health and drug coverage, which may change from year to year.

For state-by-state information, important dates, and enrollment resources for Medicare Advantage and Part D in 2024, visit: http://www.cms.gov/files/document/2024-ma-part-d-landscape-state-state.pdf

For more information on the Medicare Advantage Value-Based Insurance Design Model, including plan participation, visit https://rb.gy/i2fug

To access this information in Spanish, visit https://rb.gy/pnt8y