For those 65 or older, Medicare coverage is an invaluable part of staying healthy. But Medicare is a complicated program as it has multiple parts designed to work together to provide comprehensive coverage. An important piece of that puzzle is Medicare Part A, which helps pay for hospital visits and other inpatient healthcare you might need.
Each year, Medicare Part A's coverage changes at least a bit. Below, you'll learn what you can expect from Part A in 2024 based on changes that the Centers for Medicare & Medicaid Services recently announced. First, though, here are some of the basics of what Part A is.
The coverage Medicare Part A offers
Medicare Part A provides coverage to eligible participants who need a hospital stay, a skilled nursing facility, or other inpatient treatment. Most patients can typically expect a semi-private hospital room and any medically necessary treatment, services, tests, and prescription drugs to treat whatever the patient is suffering from. Part A also provides for meals during hospital stays.
The primary idea behind Medicare Part A is to get people back to full health after suffering from a covered illness or injury. Stays of two days or more qualify for Part A benefits, and coverage can extend for up to several months, as detailed below.
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Medicare Part A does not cover long-term nursing home stays, though. Skilled nursing care does qualify, however, but it usually has to follow a related hospital stay of at least three days. Patients must demonstrate a reasonable chance of full recovery as Medicare coverage isn't designed to cover ongoing conditions with no likelihood of resolution.
Part A also offers other services. Those who are terminally ill can typically get home hospice care, and others can get care provided at home for other medically necessary conditions.
Do you have to pay to get Medicare Part A coverage?
The vast majority of those receiving Medicare Part A don't have to pay a monthly premium for coverage. Those who paid or had a spouse who paid into the Medicare program via payroll withholding for at least 10 years generally don't have to pay for their Part A coverage.
Those with shorter work histories must pay a monthly premium for Medicare Part A coverage. Those working between 30 and 39 quarters will pay $278 per month in 2024, which is the same as the cost in 2023. Those with fewer than 30 quarters of eligible work history have to pay $505 per month, which is actually lower by $1 per month than what participants paid this year.
Costs under Part A if you need healthcare
Those who actually use their Part A coverage during the year have to pay additional costs under the program. In 2024, the inpatient deductible amount will go up by $32 to $1,632.
Coinsurance amounts are also on the rise. After you've covered the deductible, Medicare typically provides full reimbursement for the first 60 days of a hospital stay. But after that, you'll have to contribute, with coinsurance from the 61st day to the 90th day amounting to $408 per day, up $8 from 2023. After that 90th day, you have 60 lifetime reserve days, for which you'll pay $816 per day in 2024. That's $16 higher than in 2023.
Costs for skilled nursing facility care are also increasing. You'll pay nothing for the first 20 days, but after that, patients have to pay $204 per day from the 21st day to the 100th day. That's up by $4 per day from 2023. After 100 days, Medicare no longer offers skilled nursing coverage.
Know what you get with Medicare Part A
If you want to be smart with your retirement planning, it pays to know what benefits you're eligible for. Medicare Part A plays a key role in helping retirees pay for their healthcare, and knowing everything you can do to maximize your benefits can give you a much more comfortable retirement.
