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What will you pay for Medicare in 2023?

As of September 27th, 2022 the Centers for Medicare and Medicaid released cost changes for Medicare Parts A and B. These changes will affect monthly premiums, deductibles, coinsurance amounts, and the 2023 Medicare Parts B & D income-related monthly adjustment amounts. 

 

What has changed to Medicare Part A?

Let’s take a glance at the changes, starting with Medicare Part A and the Deductible. As a reminder Medicare Part A covers hospital stays, skilled nursing facilities, and in some cases hospice and in-home health care. Keep in mind that most people do not pay a premium for Part A if they (or their spouse) have worked for 40 quarters (10 years) and paid into Medicare taxes. 

 

Part A Deductible and Coinsurance Amounts for Calendar Years 2022 and 2023
by Type of Cost Sharing
2022 2023
Inpatient hospital deductible $1,556 $1,600
Daily coinsurance for 61st-90th Day $389 $400
Daily coinsurance for lifetime reserve days $778 $800
Skilled Nursing Facility coinsurance $194.50 $200.00

 

What has changed to Medicare Part B?

Medicare Part B covers most doctor services, outpatient therapies and durable medical equipment. Changes to the premium and deductible are listed below.

2022 2023
Part B Premium

*Income related monthly adjustment applies, see chart. 

$170.10 $164.90
Part B Deductible  $233 $226

The Part B Premium is based on an individual’s income and what a beneficiary pays is based on the income-related monthly adjustment amounts (IRMAA). The standard premium for 2023 of $164.90 is for individuals that made $97,000 or less according to income tax returns or made less than $194,000 based on a joint filing. Use the chart below if IRMAA is applicable in your specific situation.

*If your yearly income in 2021 (for what you pay in 2023) was:

Beneficiaries who file individual tax returns with modified adjusted gross income: Beneficiaries who file joint tax returns with modified adjusted gross income: Income-Related Monthly Adjustment Amount Total Monthly

 Premium Amount

Less than or equal to $97,000 Less than or equal to $194,000 $0.00 $164.90
Greater than $97,000 and less than or equal to $123,000 Greater than $194,000 and less than or equal to $246,000 $65.90 $230.80
Greater than $123,000 and less than or equal to $153,000 Greater than $246,000 and less than or equal to $306,000 $164.80 $329.70
Greater than $153,000 and less than or equal to $183,000 Greater than $306,000 and less than or equal to $366,000 $263.70 $428.60
Greater than $183,000 and less than $500,000 Greater than $366,000 and less than $750,000 $362.60 $527.50
Greater than or equal to $500,000 Greater than or equal to $750,000 $395.60 $560.50

 

Medicare Part D Income-Related Monthly Adjustment Amounts

Medicare Part D (Prescription drug coverage) also assesses an income-related monthly adjustment amount that is paid in addition to an individual’s prescription drug plan premium.

If your yearly income in 2021 (for what you pay in 2023) was:

Beneficiaries who file individual tax returns with modified adjusted gross income: Beneficiaries who file joint tax returns with modified adjusted gross income: Income-related monthly adjustment amount
Less than or equal to $97,000 Less than or equal to $194,000 $0.00
Greater than $97,000 and less than or equal to $123,000 Greater than $194,000 and less than or equal to $246,000 12.20
Greater than $123,000 and less than or equal to $153,000 Greater than $246,000 and less than or equal to $306,000 31.50
Greater than $153,000 and less than or equal to $183,000 Greater than $306,000 and less than or equal to $366,000 50.70
Greater than $183,000 and less than $500,000 Greater than $366,000 and less than $750,000 70.00
Greater than or equal to $500,000 Greater than or equal to $750,000 76.40

 

Part B Premium reduced?

Each year the Medicare Part B premium, deductible, and coinsurance rates are determined according to the Social Security Act. Last year, we saw some of the largest spikes in cost and the Centers for Medicare and Medicaid Services (CMS) pointed to a number of factors including an increase to Social Security Benefits of 5.9% based on cost of living, pandemic spending, and planning for the cost of a potentially new Alzheimer drug. The spending for that potentially new Alzheimer’s drug as well as other Part B items and services was lower than projected and lead to the decrease in the 2023 Part B premium.  

It is more important now than ever to ask questions on how premiums, co-insurance and deductibles directly affect your health insurance coverage! If you have any more questions about these increasescontact VibrantUSA today.

For more detailed information please visit the Center for Medicare and Medicare Services website at: https://www.cms.gov/newsroom/fact-sheets/2023-medicare-parts-b-premiums-and-deductibles-2023-medicare-part-d-income-related-monthly

 

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