Changes to Medicare

What’s new for Medicare in 2023?

A new year means changes to Medicare, including updated premiums and deductibles and sometimes big policy moves. In 2023, there’s a little of everything: Some costs have gone down, others have increased, and there are some notable tweaks to how Medicare works.

Here are some key 2023 updates, according to the Centers for Medicare & Medicaid Services.

1 Part B costs have gone down Medicare Part B is medical insurance that covers needs like doctor visits and durable medical equipment. Everyone pays a Part B monthly premium, even people with Medicare Advantage plans.

In 2023, the Part B standard premium is $164.90 per month, down from $170.10 per month in 2022. If you have a higher income, you may pay more. The Part B deductible dropped to $226 in 2023, down from $233 in 2022.

2 Part A costs have gone up Medicare Part A is hospital insurance that covers inpatient stays in a hospital or skilled nursing facility. Most people don’t pay a premium for Part A, but for those who do, those premiums increased to $506 per month, up from $499 in 2022. And the deductible for a hospital stay is $1,600 in 2023 for each benefit period, up from $1,556 in 2022.

Copays for inpatient stays in hospitals and skilled nursing facilities are also up.

3 Insulin costs are capped New this year, insulin costs are limited to $35 a month for Medicare beneficiaries, and there is no deductible. Although the change went into effect Jan. 1, plans have a deadline of March to put this system in place.

4 Medicare advantage plan ratings are lower Each year, the Centers for Medicare & Medicaid Services gives every Medicare Advantage plan a star rating ranging from 1 to 5, with 5 being excellent. Overall, the average star rating for Medicare Advantage plans, weighted by enrollment, is 4.15 in 2023, down from 4.37 in 2022. This change doesn’t mean quality has dropped.

In fact, last year’s plan ratings were unusually high because of a pandemic policy that applied a natural disaster exception to all Medicare Advantage plans, instead of just the ones in areas affected by something like a hurricane or flood. As a result, plan ratings in 2022 were higher than usual, and this year’s correction likely represents a truer rating of plans.