How much will Medicare premiums go down in 2023?
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Sometimes change occurs quickly and is welcomed. Last month I flew to Germany to teach civilian army employees about their retirement benefits. On the flight to Germany, we all had to wear face masks during the entire flight. On the return flight to the United States a week later, we did not need face masks on the same airline. When I returned
home, I felt as if I had entered the Twilight Zone. Are Medicare Part B premiums going down in 2023? Is the Medicare Part B deductible going gown in 2023? Yes. It is unusual for Medicare costs to decrease, but it has happened before years ago. Medicare started in 1966 with a $3 monthly Part B premium and a $50 annual deductible. Historically,
Medicare Part B premiums and the annual deductible have gone up or stayed the same. That changed in 2012. The primary reason for the reductions in 2012 was the formula for physician fees. The Medicare and Medicaid Extenders Act of 2010 resulted in a projected decrease of 29.5% for the formula used to determine Medicare physician payments in 2012. Both premium and the
deductible reversed course in that year because of the physician fees and went down for the beneficiaries’ benefit. The Part B premium in 2011 was $99.90 a month which was $15.50 less a month from the previous year. The annual deductible declined from $162 to $140. In 2023, Medicare’s monthly Part B premiums will decrease from 2022’s $170.10 to $164.90. The annual deductible will be $226, falling from $233 in 2022. The primary reason for the Medicare changes announced for 2023 is
because of a recent Alzheimer’s drug, Aduhelm. Aduhelm is an expensive drug. It was projected to cost upwards of $56,000 per year per patient in planning for the 2022 Medicare Part B premiums. This resulted in a $33 premium increase for Part B premiums from the previous year. The premium for Part
B as a result in 2022 jumped to $26.30 per month. The annual deductible for Medicare Part B beneficiaries also increased that year by $30 for an annual deductible of $233. In April of this year, a decision was made by Medicare to consider planning to cover Aduhelm only for government-approved clinical trials. This policy shift reduced the monthly premiums and the annual deductible. The cost savings are being passed on to Medicare beneficiaries in 2023. The Centers for Medicare and Medicaid Services issues a fact sheet each year explaining significant changes to the coming year’s changes to Medicare and Medicaid. Some of the things you may find interesting in this document are:
Some in online chatrooms are already balking at the dollar savings being insignificant for Medicare beneficiaries in 2023. Let’s not complain. Be positive. Those savings can go to the membership costs for the American Association of Retired Persons (AARP) or The National Active and Retired Federal Employees Association (NARFE) to assist you in learning about how to leverage your retirement income for additional income savings. Also, don’t forget a donation to The American Red Cross to help others who will appreciate it. © 2022 Francis Xavier (FX) Bergmeister. All rights reserved. This article may not be reproduced without express written consent from Francis Xavier (FX) Bergmeister. About the Author
 Francis Xavier (FX) Bergmeister, CLU®, ChFC®, CASL®, ChSNC® has been Certified Financial Planner® for 30 years. He is a graduate of the Wharton School and earned a Doctor of Arts from George Mason University. He provides retirement seminars thru Federal Career Experts. designer491 / Getty Images En español Medicare’s Part B standard monthly premium will fall to $164.90 in 2023, a $5.20 decrease from 2022, the Centers for Medicare & Medicaid Services (CMS) announced on Sept. 27. The open enrollment period to make any changes to next year’s Medicare coverage begins on Oct. 15 and goes through Dec. 7. The premium drop comes in the wake of the big 2022 increase, the largest dollar increase in the history of the program. Part B covers doctor visits, diagnostic tests and other outpatient services. Most Medicare beneficiaries have Part B premiums deducted directly from their monthly Social Security payments. Next year’s premium decrease makes good on statements this year by Health and Human Services Secretary Xavier Becerra that the money Medicare was saving because spending on Aduhelm, a new Alzheimer’s drug, was not going to be as high as expected would be passed on to beneficiaries in 2023. Spending on other Part B services is also projected to be less than anticipated. AARP had called on CMS to lower the Part B premium for 2022 after Aduhelm's manufacturer lowered the price and the agency approved the medication on a limited basis. “Today’s announcement of lower Part B premiums and deductibles is welcome news for seniors who are struggling with rising costs due to inflation,” said Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer. “Reducing their Medicare expenses, combined with the expected cost of living adjustment for Social Security, will provide much-needed financial relief for older Americans.” CMS also announced the premiums for those Medicare enrollees who pay higher monthly charges because of their income. Those charges will also decline. Part B beneficiaries with annual individual incomes greater than $97,000 will pay more than the standard premium — how much more will depend upon income. For example, someone filing an individual tax return whose income is between $97,000 and $123,000 will pay $230 a month for Part B. CMS says about 7 percent of Medicare beneficiaries pay more than the standard monthly premium. Most Medicare enrollees must pay the Part B premium whether they have original Medicare or a private Medicare Advantage plan. Some Advantage plans offer a “giveback” benefit where the insurer covers part or all of a member’s Part B monthly premium. Consumers can find those plans on the Medicare plan finder. Deductibles in Medicare Advantage vary by plan. Part B deductible lowerThe annual Part B deductible for 2023 is also decreasing, to $226, a $7 decline. And beginning July 1, Medicare enrollees who take their insulin through a pump as part of the Part B durable medical equipment benefit will not have to pay a deductible. Under the new Inflation Reduction Act of 2022 , cost sharing for insulin will be capped at $35 a month next year. Part A costs increaseWhile most Medicare enrollees do not pay a monthly premium for Part A, which covers inpatient hospital, skilled nursing facility, hospice and some home health care services, there is a deductible charged for each hospital stay. For 2023, the Part A deductible will be $1,600 per stay, an increase of $44 from this year. For those people who have not worked long enough to qualify for premium-free Part A, the monthly premium will also rise. The full Part A premium will be $506 a month in 2023, a $7 increase. Whether a beneficiary has to pay the full Part A premium depends on their or their spouse’s work history. Beneficiaries with Medicare Advantage plans should check with their plan for hospital charges. Dena Bunis covers Medicare, health care, health policy and Congress. She also writes the “Medicare Made Easy” column for the AARP Bulletin. An award-winning journalist, Bunis spent decades working for metropolitan daily newspapers, including as Washington bureau chief for the Orange County Register and as a health policy and workplace writer for Newsday. Will Medicare premiums go down in 2023?The Centers for Medicare and Medicaid Services has announced the standard Medicare premiums for Part B beneficiaries will be $164.90 a month in 2023, down $5.20 from the $170.10 monthly charge in 2022, or about 3% less.
What are the changes to Medicare for 2023?Changes to Medicare Part B
Medicare enrollees will pay a lower Part B rate and deductible in 2023. The cost of Medicare Part B will go from $170.10 per month in 2022 to $164.90 in 2023, a decrease of $5.20 per month. The Medicare Part B deductible is also decreasing in 2023.
What are the income limits for Medicare 2023?If you filed individually and reported $97,000 or less in modified adjusted gross income (MAGI) on your 2021 tax return, you won't be charged higher rates for Medicare Part B (medical coverage) and Part D (prescription coverage) in 2023. For joint filers, the income limit is $194,000 or less.
What will the Medicare Part B deductible be in 2023?2022 and 2023 Medicare Part B deductible
After your deductible is met, it's typical to pay 20% of the Medicare-approved amount for these services. The total 2023 Part B deductible is $226 for the year (a decrease of $7 from the annual deductible of $233 in 2022). No benefit periods apply to Part B coverage.
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