In a world where the price of everything is going up, Medicare recipients get a price cut beginning January 1, 2023. The Centers for Medicare and Medicaid Services (CMS) just announced that the monthly premium for Medicare Part B, which covers doctor visits, diagnostic tests, and other outpatient services, is decreasing $5.20 per month to $164.90.
That’s good news in light of the 14.5% increase in Part B premiums in 2022, the largest dollar increase in the history of Medicare. CMS said the increase was necessary to pay for Aduhelm, an expensive new Alzheimer’s drug. But, the manufacturer of Aduhelm lowered the price, CMS approved the drug on a limited basis, and Medicare is expecting lower spending on other Part B services. That’s why Part B premiums are going down.
CMS also outlined 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. Deductibles in Medicare Advantage vary by plan.
Part B premiums aren’t the only thing going down. The annual Part B deductible for 2023 is also decreasing, to $226, a $7 decline. And beginning July 1, 2023, 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.
But, it’s not all good news. While 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.
Your Medicare coverage should be reviewed every year to make sure that the plan you have continues to meet your healthcare requirements. Changes to your Medicare coverage can be made during the Open Enrollment Period which runs October 15 through December 7.
