Medicare Open Enrollment and Changes for 2024

By Brett Gottlieb

Every year, Medicare offers its wide pool of nearly 65 million beneficiaries the chance to pause, assess their coverage, and make any changes to help them make the most of the Federal Government’s health insurance program. This program primarily serves adults aged 65 and over, as well as individuals with disabilities.

Understanding the complexities of Medicare enrollment choices can be confusing, but is an essential aspect of your financial plan. And the open enrollment phase offers a valuable opportunity to assess whether it is meeting your needs. With Medicare open enrollment currently open, we’ve compiled this overview to streamline your understanding of the most important details and update you on changes to Part D monthly premiums in 2024.

The Four Parts of Medicare

Medicare coverage is divided into 4 parts, each with a different coverage level:

• Medicare Part A: Also known as hospital insurance, Medicare Part A covers inpatient hospital care and some nursing care coverage. If you or your spouse paid Medicare payroll taxes during your working years for at least 10 years, Part A is free for you. If you didn’t, you can still get coverage by paying a monthly premium.
  
  
• Medicare Part B: Part B is medical insurance coverage for some medical conditions and preventative care, including doctor visits and other outpatient services. You will pay a monthly premium for Part B coverage. Together, Parts A and B are known as Original Medicare.
  
  
• Medicare Part C: Known as Medicare Advantage Plan, this is an alternative to Original Medicare that is offered through Medicare-approved private companies. This plan bundles Part A and Part B and often includes Part D as well. Medicare Advantage plans also often cover additional services not covered by Part A, Part B, or Part D, including vision, hearing, and dental visits.
  
  
• Medicare Part D: This optional private insurance add-on includes drug coverage. Not to make things even more confusing, but Part D has a late enrollment penalty. Even if you don’t need prescription coverage when you are first eligible for Medicare, you may want to enroll in the plan to avoid extra long-term costs. 

The Centers for Medicare & Medicaid Services (CMS) recently stated that the average monthly premium for Medicare Part D coverage in 2024 is anticipated to hover around $55.50. This projection reflects a decline of 1.8% from the 2023 figure of $56.49. These improvements help Medicare beneficiaries enjoy reduced costs, allowing for more affordable access to prescription medications.

Your Open Enrollment Options

Keep in mind that open enrollment is not for those who have not yet enrolled in Medicare. If that’s you, your initial enrollment period is based upon your birthday, not a set date on a calendar. You need to sign up for coverage during the window of time that begins three months before the month of your 65th birthday and ends at the end of the third month after, for a total of seven months.

The open enrollment period affects each part separately. Here’s what you can do with your Medicare coverage:

• If you have Medicare Parts A & B,you can switch to Part C.
• If you have Medicare Part C, you can switch back to Original Medicare or change to a different Medicare Advantage Plan.
• If you have Part D, you can switch to a different Part D plan or drop your prescription drug plan.

You can also use this time to enroll in Part C and Part D for the first time.

When Can I Make These Changes?

Medicare open enrollment is from October 15th through December 7th each year. Making changes to your plan during this time provides the most flexibility and will affect your 2024 Medicare coverage.

Don’t get this confused with the Medicare Advantage open enrollment period that occurs from January 1st to March 31st, where those with Part C can change to a different Part C plan or switch to Parts A and B. Any other changes need to happen in the October-to-December enrollment period.

Need Support? We Can Help.

Reviewing your Medicare enrollment options is an important decision that can influence your retirement wealth management strategy. While this process might seem confusing, you don’t have to navigate it on your own.

At Comprehensive Advisor, we are here to guide you through the complexities of Medicare and support you in identifying the most suitable plan for your needs. If you’re seeking further information on how we can assist you or have questions regarding your retirement plan, please don’t hesitate to email us at info@ComprehensiveAdvisor.com or call (760) 813-2125.

About Our Advisors

Brett Gottlieb is the founder of Comprehensive Advisor and a financial advisor with nearly two decades of industry experience. He graduated from California State University-Chico with two bachelor’s degrees, in business administration and economics, and is a licensed insurance agent in several states. He is passionate about guiding his clients on retirement income planning, helping each client pursue their specific retirement goals, and defending the assets his clients have worked so hard to achieve. Brett is a California native and currently resides in San Elijo Hills with his beautiful wife and three children.

Our team of qualified professionals have experience in the financial service industry, and our advisors hail from some of the largest independent broker/dealers and banking institutions in the country. They have dedicated their professional careers to creating personalized financial solutions for individuals and families who seek successful retirement planning and currently offer investment advisory services through AE Wealth Management, LLC. Our advisors take a common-sense approach to the planning process and work with clients to create a retirement road map to help ensure their assets are protected and they receive the income needed to enjoy their future. Based in Carlsbad, California, they work with clients throughout San Diego County and beyond. Learn more by connecting with Brett on LinkedIn or email them at info@ComprehensiveAdvisor.com.

Insurance products are offered through the insurance business C.A. Financial & Insurance Services. Comprehensive Advisor, LLC is an Investment Advisory practice that offers products and services through AE Wealth Management LLC (AEWM), a Registered Investment Advisor. AEWM does not offer insurance products. The insurance products offered by C.A. Financial & Insurance Services are not subject to investment Advisor requirements. CA Ins. Lic. #6000262 This material is intended to provide general information and is believed to be reliable, but accuracy and completeness cannot be guaranteed. Investing involves risk, including the potential loss of principal. Any references to protection benefits or lifetime income, etc., generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Product and feature availability may vary by state.

We are not affiliated with Medicare or any other government agency. By contacting us, you will be connected with a licensed insurance agent. Medicare Advantage Plans are insured or covered by a Medicare Advantage organization with a Medicare contract and/or a Medicare-approved Part D sponsor. Enrollment in the plan depends on the plan’s contract renewal with Medicare. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options. Availability of benefits and plans varies by carrier and location. Deductibles, copays and coinsurance may apply. Plans purchased after initial enrollment period are subject to eligibility requirements.  9/2023 – 01982759