2023 Medicare Costs: Parts A & B Premiums and Deductibles

One constant thing in life is change, and Medicare is no exception. Here are the 2023 Medicare costs and how these changes affect you.

Medicare Part A Premium and Deductible

Medicare Part A covers inpatient hospital, skilled nursing facility, hospice, inpatient rehabilitation, and home healthcare services. About 99 percent of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment.

The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period. The Medicare Part A inpatient hospital deductible beneficiaries pay if admitted to the hospital will be $1,600 in 2023, an increase of $44 from $1,556 in 2022.

In 2023, beneficiaries must pay a coinsurance amount of $400 per day for the 61^st through 90^th day of a hospitalization ($389 in 2022) in a benefit period and $800 per day for lifetime reserve days ($778 in 2022). For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $200.00 in 2023 ($194.50 in 2022).

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Medicare Part B Premium and Deductible

Medicare Part B covers physician services, outpatient hospital services, home health services, durable medical equipment, and other medical and health services not covered by Medicare Part A.

Each year the Medicare Part B premium, deductible, and coinsurance rates are determined according to the Social Security Act. The standard monthly premium for Medicare Part B enrollees will be $164.90 for 2023, a decrease of $5.20 from $170.10 in 2022. The annual deductible for all Medicare Part B beneficiaries is $226 in 2023, a decrease of $7 from the annual deductible of $233 in 2022.

The 2022 premium included a contingency margin to cover projected Part B spending for a new drug, Aduhelm. Lower-than-projected spending on Aduhelm and other Part B items and services resulted in much larger reserves in the Part B account of the Supplementary Medical Insurance (SMI) Trust Fund, which can be used to limit future Part B premium increases. The decrease in the 2023 Part B premium aligns with the CMS recommendation in a May 2022 report that excess SMI reserves be passed along to people with Medicare Part B coverage.

Beginning in 2023, certain Medicare enrollees who are 36 months post kidney transplant and no longer eligible for full Medicare coverage can elect to continue Part B coverage of immunosuppressive drugs by paying a premium. For 2023, the immunosuppressive drug premium is $97.10.

2023 Medicare Costs and the Annual Enrollment Period

Medicare Annual Enrollment for 2023 will begin on October 15, 2022, and ends on December 7, 2022. During this time, people eligible for Medicare can compare 2023 coverage options between Original Medicare, Medicare Advantage “Part C,” and Part D prescription drug plans.

Medicare health and drug plan costs and covered benefits can change yearly, so people with Medicare should look at their coverage choices annually and decide on the options that best meet their health needs.

Medicare Savings Programs

To help with their Medicare costs, low-income seniors and adults with disabilities may qualify to receive financial assistance from the Medicare Savings Programs (MSPs). The MSPs help millions of Americans access high-quality health care at a reduced cost, yet only about half of eligible people are enrolled. The MSPs help pay Medicare premiums and may also pay Medicare deductibles, coinsurance, and copayments for those who meet the eligibility conditions. This program offers relief from Medicare costs, allowing people to spend that money on other vital needs, including food, housing, or transportation. People with Medicare interested in learning more can visit https://www.medicare.gov/your-medicare-costs/get-help-paying-costs/medicare-savings-programs. I can also guide you in the right direction on this.

Medicare Part B Income-Related Monthly Adjustment Amounts (IRMAA)

Since 2007, a beneficiary’s Part B monthly premium has been based on their income. These income-related monthly adjustment amounts affect roughly 7 percent of people with Medicare Part B. The 2023 Part B total premiums for high-income beneficiaries with full Part B coverage are shown here >> https://www.medicare.gov/basics/costs/medicare-costs.

Medicare Part D Income-Related Monthly Adjustment Amounts (IRMAA)

Since 2011, monthly premiums for higher-income beneficiaries’ Part D drug plans have been based on income. These income-related monthly adjustment amounts affect roughly 8 percent of people with Medicare Part D. These individuals will pay the income-related monthly adjustment amount in addition to their Part D premium.

Part D premiums vary from plan to plan, and roughly two-thirds of beneficiaries pay premiums directly to the plan. In contrast, the remaining beneficiaries have their premiums deducted from their Social Security benefit checks.

Regardless of how a beneficiary pays their Part D premium, the Part D income-related monthly adjustment amounts are deducted from Social Security benefit checks or paid directly to Medicare. The 2023 Medicare costs Part D income-related monthly adjustment amounts for high-income beneficiaries are shown here >> https://www.medicare.gov/drug-coverage-part-d/costs-for-medicare-drug-coverage/monthly-premium-for-drug-plans.

If you need help navigating your Medicare plan options, we can help you! Please get in touch with us, and we’ll get you on the schedule.

You can call (888) 901-4870 or (404) 996-0045 to set up a quick phone call or schedule yourself here >> Schedule a call with Chad.

2023 Medicare Costs