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Hospital Insurance Covered by Medicare
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However, Medicare is a multifaceted system comprising different parts that is continuously evolving. As we enter 2024, it’s important for both current and soon-to-be beneficiaries to understand upcoming updates to Medicare hospital coverage, costs, and healthcare benefits.
However, Medicare is a multifaceted system comprising different parts that is continuously evolving. As we enter 2024, it’s important for both current and soon-to-be beneficiaries to understand upcoming updates to Medicare hospital coverage, costs, and healthcare benefits.
Updates to Hospital Insurance in 2024
Medicare Part A, also known as hospital insurance, covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home healthcare. It provides invaluable financial protection by paying for medically necessary hospitalizations. However, it does involve cost-sharing through deductibles, copayments and coinsurance.
In 2023, the Part A deductible that beneficiaries pay for hospital stays was $1,600 per benefit period. For 2024, this deductible is increasing by 9.4% to $1,750 per benefit period. A benefit period begins the day you enter a hospital or skilled nursing facility and ends when you have not received care as an inpatient at any hospital or SNF for 60 consecutive days.
Medicare Part A also requires daily coinsurance payments for long hospital stays, which will increase slightly in 2024. For example, the daily coinsurance for days 61-90 of a hospital stay will rise from $400 to $437 in 2024. For stays beyond 90 days, the daily coinsurance will be $876 for up to 60 lifetime reserve days and then all costs after reserve days are exhausted. These rising costs underscore the importance of supplementary insurance to cover Medicare out-of-pocket expenses.
In positive news, the maximum length of a Medicare-covered hospital stay will increase from 90 to 100 days in 2024. This change allows for ten additional days of inpatient coverage without using the patient’s 60 lifetime reserve days, which are like insurance for extended hospitalizations. However, coinsurance payments still apply for days 61-100. Understanding these changes to Part A coverage and costs will help beneficiaries plan for potential hospital care needs in 2024.
Enrolling in Medicare Part A Hospital Insurance
Most American workers automatically earn Part A coverage through payroll taxes while working. Individuals age 65+ who are U.S. citizens or permanent residents can enroll in premium-free Part A if they have at least 40 quarters (10 years) of Medicare-covered employment. Those with 30-39 quarters may buy Part A for a monthly premium of $278 in 2024. People with disabilities, ALS or kidney failure may also qualify for premium-free Part A.
If you already receive Social Security or Railroad Retirement Board benefits, you may automatically be enrolled in Part A at age 65. Otherwise, you can apply online at ssa.gov, call Social Security, or visit your local office. The Initial Enrollment Period for Part A runs 7 months around your 65th birthday. Failing to enroll during this time can lead to lifelong late enrollment penalties.
New Benefits and Plan Offerings for 2024
Medicare Advantage (MA) plans are offered by private insurers as an alternative to original Medicare (Parts A and B). In 2023, 29.5 million beneficiaries were enrolled in MA plans which provide all original Medicare benefits along with extras like dental, vision, hearing, and wellness programs.
For 2024, MA plans now must cover up to $2,000 per year for dental services like cleanings, exams, fillings and crowns. This dental expansion will allow many to forego separate dental coverage. Plans also can newly cover transportation to medical appointments, which improves access for those with limited mobility. With 99% of beneficiaries having access to 10+ MA plans in 2024, researching options will be key to find the optimal customized coverage.
Updates to Medicare Part B Outpatient Coverage in 2024
Medicare Part B is optional but important coverage for doctor visits, outpatient care, medical equipment, and preventive services. The standard monthly Part B premium will be $164.90 in 2024 for enrollees with modified adjusted gross incomes below $97,000 ($194,000 for couples). Income-related premiums apply for higher earners.
The Part B deductible will increase from $226 in 2023 to $248 in 2024. Doctors and facilities may also increase Medicare charges, leading to higher 20% coinsurance costs. Reviewing Part B expenses during fall open enrollment will be important for budgeting and deciding on supplementary coverage.
Additional Medicare Enrollment Periods and Resources
The Initial Enrollment Period for Medicare spans 7 months around age 65. For those who missed this, General Enrollment Periods from Jan 1 to March 31 allow signing up for Part B with premium penalties. Special Enrollment Periods also accommodate certain situations like losing workplace coverage.
Helpful resources for navigating Medicare include the Medicare Plan Finder, Medicare & You handbook, State Health Insurance Assistance Programs (SHIPs), 1-800-MEDICARE and medicare.gov. Learning about changes each year ensures your coverage continues meeting healthcare and financial needs. With proper planning, beneficiaries can confidently navigate the evolving Medicare landscape.
