Medicare Premiums and Deductibles in 2023: Here’s How Much They’ll Cost
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If you receive Medicare Part B (or you’re planning to enroll), 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.
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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.