Possible Medicare Premium Hike: Beneficiaries Brace for 2024 Increases
Medicare beneficiaries may be in for a financial jolt next year, as projected by The Senior Citizens League, a nonprofit organization advocating for senior issues.
The organization estimates that Medicare Part B premiums could increase by approximately $15 per month in 2024, bringing the total monthly premium to around $179.80.
This comes after Medicare Trustees initially projected a premium increase of about $10 per month earlier this year.
The surge in projected premiums can be attributed to the recent approval of the new Alzheimer’s drug, Leqembi, by the Food and Drug Administration.
According to The Senior Citizens League, Leqembi is expected to come with a hefty price tag of $26,000 for individuals without insurance.
Moreover, Medicare’s expenses to administer and monitor patients taking the drug will add an additional $5 per month to the previously projected premium increase.
If these projections hold true, Medicare beneficiaries would be looking at an annual premium cost of $2,157.60 in 2024.
This amounts to approximately $180 more than what beneficiaries paid in 2023.
Medicare Part B provides coverage for an array of services, including doctor visits and outpatient treatments like lab tests and diagnostic screenings.
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Medicare Faces Uncertainty with Costly Alzheimer’s Drug
Despite experiencing a 3% decline in premiums this year, the spending on the new Alzheimer’s drug may elevate it to become the third most expensive drug covered by Medicare Part B, with the program expected to shoulder about 25% of the drug’s costs.
It’s important to note that Medicare will offer coverage for Leqembi to patients with mild cognitive impairment or mild dementia with confirmed amyloid plaques, as reported by CNBC citing KFF.
However, even with coverage, patients may still be responsible for paying over $5,000 annually for the treatment.
For Medicare beneficiaries, the uncertainty lingers until the federal government announces new Medicare premiums in the fall, leaving retirees and beneficiaries in the dark about their actual costs for 2024 until then.
On a more positive note, despite the projected rise in Medicare premiums, seniors may see a silver lining in the form of an increase in their Social Security benefits in 2024 due to continued inflation.
The Senior Citizens League has projected a cost-of-living increase of 3% for next year, providing some relief to seniors amid the looming premium hikes.
As the healthcare landscape continues to evolve, beneficiaries must remain vigilant and informed about potential cost increases.
Organizations like The Senior Citizens League play a vital role in advocating for the needs of seniors, making sure their voices are heard and their concerns addressed during these challenging times.
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Source: Syracuse
