Medicare Premiums and Deductibles: Here’s How Much They’ll Cost in 2023
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If you’re a Medicare Part B beneficiary or you’re enrolling this fall, there’s good news. The cost of premiums and deductibles will be cheaper in 2023. However, if you receive Medicare Part A, you can expect an increase in prices. Medicare Part D enrollees could see an income-related monthly adjustment next year.
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Each year, the Medicare Part B premium, deductible and coinsurance rates are determined following guidelines set out in the Social Security Act, the Centers for Medicare & Medicaid Services said. Due to lower-than-projected spending, which resulted in larger reserves, the CMS will decrease Part B premiums and deductibles in 2023. We’ll explain more below.
Additionally, if you receive Social Security payments, a benefits increase for 2023 has been announced. “This means that seniors will have a chance to get ahead of inflation, due to the rare combination of rising benefits and falling premiums,” Press Secretary Karine Jean-Pierre said during a White House briefing.
Here’s how much the prices will go down for those who receive Medicare Part B and what the new costs will be next year. Note that enrollment for Medicare ends Dec. 17.
How much will Medicare Part B be in 2023?
You won’t see a hefty reduction in the amount you currently pay, but it will be less than what you’ve been paying. Here’s how payments break down for Medicare Part B in 2023.
Standard monthly premium: $164.90 in 2023, a decrease of $5.20 from $170.10 in 2022.
Annual deductible: $226 in 2023, a decrease of $7 from the annual deductible of $233 in 2022.
How is Medicare Part B cheaper?
The CMS recommended in May that any excess Supplementary Medical Insurance Trust Fund money be passed along to those with Medicare Part B coverage. This is to help decrease the costs of the premium and deductibles.
This year’s Part B premium was projected to cover spending for a new drug called Aduhelm, which is intended to treat Alzheimer’s disease. Since less money was spent on that drug and other Part B items, there were more reserves left over in the Part B account of the SMI fund, which will now be used to limit future Part B premium increases.
While Medicare Part B is seeing a decrease in premiums next year, those who receive Medicare Part A will see increases in 2023. Here’s a breakdown of what’s going up.
Inpatient hospital deductible: $1,600 in 2023, an increase of $44 from $1,556 in 2022.
Daily coinsurance for the 61st through the 90th day: $400 in 2023, an increase of $11 from $389 in 2022.
Daily coinsurance for lifetime reserve days: $800 in 2023, an increase of $22 from $778 in 2022.
Skilled Nursing Facility coinsurance: $200 in 2023, an increase of $5.50 from $194.50 in 2022.
Monthly adjustments for Medicare Part D
If you receive Medicare Part D, you may see an adjustment to your monthly amount.
Medicare Part A covers inpatient hospital, skilled nursing facility, hospice, inpatient rehabilitation and some home health care services.
Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment and certain other medical and health services not covered by Medicare Part A.
Medicare Part D helps cover prescription drug costs.
For more information, here’s when you can sign up for Affordable Care Act plans.