Medicare Announces 2024 Part D Costs
The government has announced the 2024 costs for a standard Part D prescription drug plan.
- The standard deductible will be $545.
- The base beneficiary premium for a standard Part D drug plan is $34.70. Although it's likely no drug plan will have this premium, it establishes the Part D late enrollment penalty.
- The late enrollment penalty this year will be 34.7¢ for every month a person does not have creditable prescription drug coverage.
- The discount for both brand-name and generic medications in the donut hole (Catastrophic Coverage) will be 75%.
- Medicare has increased the limit for entering the donut hole (Coverage Gap) to $5,030. The threshold for getting out of the donut hole is $8,000. (The Coverage Gap limits are set by a formula established in the 2003 drug plan law involving the negotiated value of prescription drug costs.)
- Once reaching the Catastrophic Coverage phase, the beneficiary will pay nothing for medications.
