As 2022 heads to the finish line, those receiving Medicare benefits have received a dose of good news. Medicare Part B premiums and deductibles will shrink next year because the program spent less than anticipated in 2022. Unfortunately, the cost cuts Medicare recipients will see in 2023 are smaller than the increases beneficiaries were hit with in 2022.
Additionally, Part A’s deductibles for hospitalization expenses will also be higher in 2023.
The standard Medicare Part B premium will be $164.90 in 2023, that’s a drop from the $170.10 that beneficiaries paid in 2022. As for Part B’s 2023 deductible, it will be $226 in 2023, down $7 from 2022’s
Prices from 2021 to 2022 took a sizeable jump. The 2022 Part B premium went up 14.5% or $21.60.
Additionally, Part B’s deductible jumped $30 from 2021 to 2022. So, while jump of 2023’s numbers present good news, the upcoming numbers don’t entirely claw back 2022’s raises.
Finally, the Centers for Medicare and Medicaid Services “CMS” also announced that beginning in 2023, some Medicare enrollees who are 36 months post kidney transplant, and who therefore no longer qualify for full Medicare coverage, can continue Part B coverage of immunosuppressive drugs by paying a monthly premium of $97.10.
Medicare open enrollment is open now through Dec. 7. This is the window of time when enrollees can review their coverage and decide if they need to make any adjustments based on their changing needs.
Breaking It Down
Let’s also take a moment to review the various parts of Medicare.
Medicare Part B is general insurance that will cover you for things like visits to your doctor and other healthcare providers, outpatient, and home healthcare as well as medical equipment and preventative care services like vaccines and yearly wellness appointments.
Part A handles inpatient hospitalizations, skilled nursing facility services, hospice care, inpatient rehabilitation and some home healthcare services. Typically, Part A doesn’t come with a premium, according to the article.
Part D provides prescription drug coverage in conjunction with private insurance companies.
Part C, which is often referred to as Medicare Advantage, is private insurance that takes the place of Part B and sometimes Part D as well.
The Part A deductible for hospital admissions will rise by $44 in 2023 to $1,600. The deductible covers the beneficiary’s share of the expenses for the first 60 days of Medicare-covered inpatient hospital care in a benefit period.
Let’s break that down a little further. For someone who’s hospitalized for more than 60 days, in 2023 the coinsurance tab will jump to $400 per day for the 61st day through the 90th day. In 2022 that amount was
$389. After the 90th day, it rises to $800, up from 2022’s $778.
For those in skilled nursing facilities, the daily coinsurance expense for days 21 through 100 of extended care services in a benefit period will jump from $194.50 to $200.
Parts B and D
Let’s next look at parts B and D.
Part B’s standard monthly premiums apply to those making $97,000 or less per year, or couples annually earning a combined $194,000. Premiums are more for those with higher incomes. For example, those with incomes between $97,000 and $123,000 for individuals and $194,000 and $246,000 for couples, will pay an additional monthly premium of $65.90 for Part B and
$12.20 for Part D.
Furthermore, in 2023 those with an annual income of
$500,000 or more will be subject to an additional
$565.50 a month for Part B and $76.40 for Part D.
Those income levels are more than they were in 2022. In 2022, standard premiums applied to individuals who made more than $91,000 and couples with an annual income of more than $182,000. Those extra charges are referred to as the income-related monthly adjustment, or IRMAA, and according to CMS, roughly 7% of Part B beneficiaries are subject to these surcharges.
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