Medicare Part D Premiums 2024 to Spike
Category: Medicare
November 23, 2023 – Medicare Part D Premiums will rise sharply in 2024 in at least 5 states, according to a report from Health View Services. The rates jump has several causes. One comes as byproduct of President Biden’s success in lowering out of pocket costs for prescription drugs under Medicare Part D (the cap will be $2000 in 2025, down from $7000 in 2023). Insurance companies are scrambling to cover the costs that they will experience as a result. Other contributing factors are the cap on insulin prices at $35 per month and free access to vaccines.
Medicare Part D Premiums 2024 to Rise Sharply
Average premiums will rise between 42% and 57% in 2024 compared to 2023 in 5 big states: New York, California, Florida, Texas, and Pennsylvania. The premium increase will range from 42% to 57%, which translates to $128 to $381, according to a report from Health View Services. Medicare Advantage participants generally pay lower Part D premiums, and may not experience rate increases as high as those under standalone Part D programs. According to KFF, “The national average monthly Part D premium is projected to increase 21% in 2024 to $48, up from $40 in 2023.”
Sign up for Part D – even if you don’t think you need it now
People who fail to sign up for Part D coverage at age 65 will experience a 1% penalty for every month they delay signing up. That can really add up if you delay several years. So make sure you either have coverage (from a previous employer) sign up for a low cost Part D plan, or get prescription drug coverage through your Medicare Advantage plan.
For further reading:
Best Medicare Plan – Get Yours with Open Enrollment Through Dec 7
Comments: Do you think your Medicare Advantage Premiums will increase in 2024? Let us know in the Comments section below.
Comments on "Medicare Part D Premiums 2024 to Spike"
Beebs says:
Why only in 5 states?
Toni says:
We are in a standalone Part D drug plan through Florida Blue. Our premiums have rarely increased more than a few dollars over the years and, in fact, for 2024 we got notice our premiums for Part D are going down about $3.00 a month for each of us.
Admin says:
Great question Beebs. The national average monthly Part D premium is projected to increase 21% in 2024 to $48, up from $40 in 2023, according to KFF.
While these 5 populous states are seeing large premium increase, it is unclear what is happening in other states, other than the premiums don't seem to be going up as much. Average Part D
premiums will rise by 30% in Texas and 53% in New York, with a range of growth in plan prices across the five states between 21% and 77%, with an average of 42% in high-end plans. See Health View Services Interval Report. https://hvsfinancial.com/wp-content/uploads/2023/11/2024-Medicare-Part-D-Premiums-Interim-Data-Report-November-2023.pdf
Toni says:
Is it possible to give us a link to where "KFF" found this information? I've been asking around in our senior community and NO ONE is indicating they had a major increase in their Part D...
Admin says:
Here is one article from Health View Services about 2024 Part D premiums. That outfit is the source reporting increases from 42 to 52%, and uses as it source reports from the largest providers in those states. High end plans would tend to have the smaller range of increases. https://hvsfinancial.com/wp-content/uploads/2023/11/2024-Medicare-Part-D-Premiums-Interim-Data-Report-November-2023.pdf
Meanwhile KFF's report suggests that the rates might not be as high - it reports "the national average monthly Part D premium is projected to increase 21% in 2024 to $48, up from $40 in 2023". It is hard to tell at this point who is correct - let's hope it is is KFF. See https://www.kff.org/medicare/issue-brief/medicare-part-d-in-2024-a-first-look-at-prescription-drug-plan-availability-premiums-and-cost-sharing/
Glenn1955 says:
Part D premiums in TX are going up in 2024 over 2023? That's news to me. I live in TX and my Part D policy premium is dropping from $11.10/month in 2023 to $0.50/month in 2024 and my out of pocket expenses for the prescriptions I get will be dropping some, as well. (Don't be fooled into thinking that the higher cost premium policies are the best because that is usually not true. Year after year I have found that the lowest annual total cost...premiums + Rx costs... policies tend to be the policies with the lowest cost premiums. The difference in total cost in my case is $Thousands each year.)
My brother lives in IL and has an Aetna Medicare Advantage policy with Part D coverage. His Part D cost in this policy is going from $15.10/month down to $4.40/month.
My mother-in-law lives in MN and her Part D policy is dropping from $22.00/month to $12.50/month.
Those who are not looking at the lower premium Part D policies are doing themselves a great and expensive disservice.
It also appears that the writer of this article has not done diligence to fact check the information he/she was provided.
Admin says:
Glenn makes a good point that shopping for the right Part D prescription drug plan can pay off. Of course you do have to consider co-pays for the drugs you take, or might have to take. WIth a Medicare Advantage plan you might have no premium. But for those with a standalone Part D plan, the facts are that premiums are going up. As we reported above, according to KFF, “The national average monthly Part D premium is projected to increase 21% in 2024 to $48, up from $40 in 2023.”
Jennifer says:
I have Part D with AARP United Healthcare. I take three medications. My co-pays have increased by a dollar or two my premium is only Forty cents per month this year. You read it correctly--40 cents!
Shumidog says:
My part D is included with the medical plan I continued with after I retired. I have been using a combination of that plans prices and the cash no insurance price for the last few years. This year, the plan has been charged for people on Medicare to cut co-pays on most Rx's. I should be able to use my insurance on all my Rx for even less cost.
Admin says:
The New York Times has a very interesting article on the many ways the Inflation Reduction Act passed by President Biden in 2022 is helping millions of seniors reduce their prescription drug costs. Sadly, most people are not aware of these benefits. For example, this year people with Part D coverage have maximum prescription drug out of pocket costs of $3,300. In 2025 maximum out of pocket drug costs are further reduced to $2,000. Previous to the new law, some people on Medicare were paying tens of thousands of dollars for their drugs.
Vaccines are now free, and insulin costs capped at $35/month. Medicare can now negotiate drug prices for 10 drugs, including the expensive blood thinners Eliquis and Xarelto. See https://www.nytimes.com/2024/02/04/business/medicare-drugs-part-d.html?unlocked_article_code=1.TE0.lOSl.TN0L_-Ap2bMg&bgrp=a&smid=url-share (free link)