Medicare beneficiaries get a premium price break
Q: With inflation pushing up the price of just about everything, will Medicare Part B premiums also be rising for 2023? A: No. Medicare beneficiaries are getting a rare bit of good news as their Part B premiums and deductibles will tick down next year after the government health insurance plan spent less than projected in 2022.
Unfortunately, the cost reductions beneficiaries will see next year are much smaller than the increases they shouldered this year. But costs will also go down for Medicare Advantage and Medicare Part D prescription drug plans.
The Centers for Medicare and Medicaid Services announced the standard Medicare premiums for Part B beneficiaries will be $164.90 a month in 2023, down $5.20 from the $170.10 monthly charge in 2022, or about 3% less. The annual deductible for all Medicare Part B beneficiaries will be $226 in 2023, which is $7 less than the 2022 deductible of $233.
CMS projects the average basic monthly premium for standard Part D coverage will be $31.50, compared to $32.08 in 2022.
Because of the Inflation Reduction Act, beneficiaries with Medicare prescription drug coverage will pay less for their drugs, including a $35 cost-sharing limit on a month’s supply of insulin. In addition, vaccines recommended by the Advisory Committee on Immunization Practices will be covered by Medicare with no cost sharing or deductibles.
Not all Medicare-related costs are going down, though. The deductible for hospitalization costs under Part A will be going up by $44 to $1,600.
Also, for patients who are hospitalized for longer than 60 days, the coinsurance amount will increase in 2023 from $389 a day to $400 a day for the 61st through the 90th day of hospitalization and from $778 a day to $800 the day after that. For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will increase from $194.50 to $200.
Medicare beneficiaries may also choose to purchase a private, supplemental insurance plan, known as medigap, to help cover deductibles and copays.
Q: I’m just below the income limit this year in which I would have to pay a surcharge for Medicare Part B. What is the limit for next year? A:
For 2023, Part B monthly standard premiums apply for individuals who make $97,000 or less a year and couples earning $194,000.
The surcharge will apply to those with higher incomes. For example, individuals who make more than $97,000 up to $123,000 and couples who make more than $194,000 and up to $246,000 will be charged an additional monthly premium of $65.90 for Part B and $12.20 for Part D. At the high end, individuals who make $500,000 a year or more will be charged an extra $395.60 a month for Part B and $76.40 for Part D next year.