Medicare Premiums Are Changing for 2023 — Are They Going Up?
The U.S. just released Medicare premiums for 2023, and it looks like policyholders will pay different amounts than before (some more, some less).
Sept. 28 2022, Published 1:50 p.m. ET
Just a little over a month before the health insurance open enrollment period begins in the U.S., the Centers for Medicare and Medicaid Services (CMS) released details on premiums for 2023.
In what feels like a breath of fresh air for inflation-riddled consumers, some premiums are actually going down — though others are increasing.
Here are the details on the Medicare costs for the upcoming calendar year so you can prepare for upcoming payments.
Not all Medicare premiums are going up in 2023 — Medicare Part B will be less.
People enrolled in Medicare Part B (which covers doctor’s visits, diagnostic tests, and general outpatient services) will pay less for their monthly premium, according to CMS.
The new standard monthly premium for Medicare Part B in 2023 will be $164.90, down $5.20 from this year’s monthly premium of $170.10. That’s a savings of $62.40 per year.
The annual deductible is also decreasing to $226, down $7 from this year’s $233.
Why is the cost going down? CMS says it has to do with healthy financial reserves thanks to the lower-than-expected costs of a new Alzheimer’s drug called Aduhelm.
“The decrease in the 2023 Part B premium aligns with the CMS recommendation in a May 2022 report that excess [Supplementary Medical Insurance] reserves be passed along to people with Medicare Part B coverage,” CMS added.
Medicare Part A deductibles and premiums will be higher in 2023.
A whopping 99 percent of Medicare patients don't have Medicare Part A (which covers inpatient hospitals, skilled nursing facilities, hospice, inpatient rehabilitation, and some home healthcare services). This is because most retirees have saved up to 40 quarters of these benefits from their working years.
For those who do have Medicare Part A, the deductible for those admitted to the hospital will be $1,600 in 2023, up $44 from this year. Part A premiums are increasing by $4–$7 per month in 2023.
CMS adds some things are staying put for Part A: “Enrollees age 65 and over who have fewer than 40 quarters of coverage and certain persons with disabilities pay a monthly premium in order to voluntarily enroll in Medicare Part A.
Individuals who had at least 30 quarters of coverage or were married to someone with at least 30 quarters of coverage may buy into Part A at a reduced monthly premium rate.”
Meanwhile, since Medicare payments are based on income, the upcoming income-related adjustment amount (IRMAA) changes are important. IRMAAs will kick in starting at incomes of $97,000 per year, up $6,000 from this year.
For the vast majority of Medicare enrollees, 2023 will be a good year. While the reality is that seniors overpaid for Medicare in previous years, the system has admitted it and is at least attempting to even the playing field.
Make sure you check the status of your Medicare premiums in 2023 so that you know what to expect.