COLA Premium Increase 2024: The Social Security Administration evaluates Medicare’s financial aspects annually. Medicare Part B costs are expected to increase next year, whereas Medicare Part D costs are expected to decrease. The Social Security Administration evaluates the Medicare program’s financial aspects annually.
It then adjusts premiums and deductibles based on Social Security Act regulations, and the COLA increase in 2024 will also result in rising fees and payments in the United States.
COLA, which stands for cost-of-living adjustment, is the method by which the U.S. government calculates the costs of certain services; the COLA increase for 2024 is anticipated to be approximately three percent.
COLA Increase 2024: Reason of Smaller Increase in Benefits Next Year
How much will Medicare Part B premiums increase in 2024?
Due to the introduction of Leqembi, a new Alzheimer’s treatment developed by Eisai and Biogen, Medicare recipients will be responsible for a portion of the costs.
As a result, Medicare Part B premiums are anticipated to rise in 2024. The projected increase will cause monthly costs to rise from the current 164.90 dollars to 174.80 dollars, a nearly 10-dollar increase.
How much will Medicare Part D premiums decline in 2024?
COLA Premium Increase 2024: Although the disparity in Medicare Part D expenses may not be significant, it is projected to decrease marginally in the near future.
According to the Centers for Medicare & Medicaid Services (CMS), the average total monthly Part D premium will decrease from 56.49 dollars in 2023 to 55.50 dollars in 2024, equating to a monthly decrease of nearly 10 dollars.
This decrease is primarily attributable to the Inflation Reduction Act (IRA) of 2022, which restructured Medicare Part D and established a mechanism to limit premium increases for Medicare Part D enrollees.
Additionally, an enhanced Basic Part D benefit is contributing to this decline by limiting annual out-of-pocket expenses, restricting cost-sharing for covered insulin products, and eliminating cost-sharing for recommended adult vaccines in 2024.
This month, the CMS is expected to release information regarding the 2024 premiums, copayments, and other cost-sharing details for all Medicare Advantage (Part C) and Part D plans.
