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 increases, contact 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
