The Centers for Medicare and Medicaid Services (CMS) announced the new 2023 premiums, deductibles, and coinsurance amounts for Medicare on September 27, 2022. Beneficiaries will be happy to see a decrease in a couple of those numbers related to Medicare Part B.
2023 Medicare Part B Updates
Last year, Medicare had the highest Part B premium increase in the program’s history. That drastic bump had many beneficiaries worried about the financial strain it would cause on their fixed-income budgets. Fortunately, we got some good news this year.
The 2023 Part B standard premium will be reduced to $164.90 per month – a drop of $5.20. In addition, the annual deductible is also being lowered to $226 – a drop of $7. These decreases result from lower spending on the Alzheimer’s drug, Aduhelm, as well as other Part B items and services. Less spending meant greater reserves in the Supplementary Medical Insurance Trust Fund, which is used to fund Part B costs. CMS recommended that those savings be passed along to individuals enrolled in Medicare Part B.
Beneficiaries with higher incomes are still subject to IRMAA, the Income-Related Monthly Adjustment Amount. However, the thresholds for 2023 have been raised, which may allow some people to have their IRMAA rates adjusted. This applies to both their Medicare Part B and Medicare Part D enrollments.
For example, in 2022, married couples who filed jointly and earned an income of at least $182,000 were subject to the first threshold of IRMAA. In 2023, the first threshold for married couples begins at $194,000.
2023 Medicare Part A Updates
Most people do not pay a premium for Part A, so they won’t notice a change in premium if that applies to them. As long as you’ve worked (and paid taxes!) for ten years, you get to enjoy premium-free Part A. If you don’t fall into that category, the premiums will be going up in 2023.
- At least 30 quarters: $278
- Less than 30 quarters: $506
Other aspects of Medicare Part A are also increasing. The deductible, which is currently $1,556, is going up to $1,600. And remember, this is not an annual deductible. The Part A deductible operates on a benefit period, which begins the day you become an inpatient at a hospital or skilled nursing facility. The benefit period ends when you’ve been hospital-free for 60 consecutive days.
Coinsurance amounts for Part A are also seeing an increase. The first 60 days are still covered at a $0 copay, but beginning on day 61, your portion for an inpatient hospital stay is as follows:
- Day 61-90: $400 per day
- Reserve days: $800 per day
Every beneficiary has 60 lifetime “reserve days” they can use after day 90. However, once these 60 days have been used, the entire cost per day is the individual’s responsibility.
Coinsurance for an inpatient stay at a skilled nursing facility is different. There, the first 20 days are covered by Part A. Days 21-100 will cost $200 per day in 2023.
If you’d like to know how these new updates will impact your Medicare coverage, reach out to one of our licensed insurance agents today. Now is a great time to have your plan’s reviewed for 2023.