Each year, the Centers for Medicare & Medicaid Services (CMS) releases cost changes related to Medicare premiums, deductibles, Medicare Advantage plans and prescription drug plans. By presenting these updates before the Medicare Advantage and Prescription Drug Plan Annual Enrollment Period (AEP), CMS helps Medicare enrollees determine the right kind of coverage for their needs.

Medicare Costs for 2024

In late September 2023, CMS released anticipated changes for Medicare Advantage plan costs, Medicare Part D prescription drug plans, Original Medicare premiums and deductibles. Medicare cost changes listed below are averages and could vary among insurance companies.

• Medicare Advantage (Part C) average premiums are set to decrease from $21.22 in 2021 to $19 per month in 2023.

• Average Medicare Part D costs in 2023 will rise from $31.47 in 2021 to $33 per month.
• Medicare Part B costs in 2023 have not officially been updated, but the 2021 Medicare Part B standard premium is $148.50. The standard premium is projected to be $158.50 each month in 2023¹. Most people pay this amount.
  
  Medicare beneficiaries whose annual income exceeds $88,000 pay higher premiums, all the way up to $504.90 for those whose annual individual income exceeds $500,000 or joint returns of $750,000.

2023 Medicare Part B Premium Chart

Individual Tax Return	Joint Tax Return	Married & Separate Tax Return	Monthly Medicare Premiums
$88,000 or less	$176,000 or less	$88,000 or less	$148.50
above $88,000 up to $111,000	above $176,000 up to $222,000	Not applicable	$207.90
above $111,000 up to $138,000	above $222,000 up to $276,000	Not applicable	$297.00
above $138,000 up to $165,000	above $276,000 up to $330,000	Not applicable	$386.10
above $165,000 and less than $500,000	above $330,000 and less than $750,000	above $88,000 and less than $412,000	$475.20
$500,000 or above	$750,000 and above	$412,000 and above	$504.90

 

Source: https://www.medicare.gov/your-medicare-costs/medicare-costs-at-a-glance

 

Why do Medicare prices change each year?

According to CMS.gov, the biggest reason for Medicare Part B deductible and premium increases is physician-administered drug costs². Medicare prices do not always increase consistently each year; in some cases, they’ll go down. When there is a price increase, it’s typically due to program expansion—not a reduction in benefits.

Medicare Advantage prices and benefits change each year, too. Insurance companies might examine what they offer and decide to remove benefits or change their prices. The good news is that Medicare Advantage benefits usually only change once a year. You’ll receive a detailed list of these changes as part of the Annual Notice of Change your Medicare Advantage provider sends in the fall.

How can I prepare for changes to my Medicare costs?

If you’re enrolled in a Medicare Advantage plan, be on the lookout for your Annual Notice of Change from your provider. You may also want to examine the services and preventive care services you use. This will give you a better understanding of what services you may or may not want to use in the coming year. 

What to Do if your Medicare Costs Increase

If your Medicare costs are set to increase, don’t panic. Price fluctuations are common, and prices may actually decrease the following year. If you’re still unhappy with the cost increases, you do have options. 

You may use the Medicare Advantage & Prescription Drug Plan Annual Enrollment Period to shop for and compare different Medicare Advantage plans. You may discover that a different carrier offers a lower price for the same coverage. While we recommend not switching Medicare plans each year just to save money, SelectQuote can help you shop for Medicare coverage by comparing rates from several different insurance companies.

Find the Best Medicare Plan Fit for Your Needs

If you have questions about navigating your Medicare benefits—including price changes—we can help. We compare rates from some of the most trusted insurance companies to find the best fit for your Medicare coverage needs. Whether it’s prescription drug coverage, exploring supplemental benefits or finding the lowest average monthly premiums for your coverage, we help people with Medicare understand and maximize their healthcare coverage.

¹https://www.cms.gov/files/document/2021-medicare-trustees-report.pdf
²https://www.cms.gov/newsroom/fact-sheets/2020-medicare-parts-b-premiums-and-deductibles