2023 Medicare Updates
Amidst all the economic downturn and inflation, Medicare beneficiaries recently got a bit of good news for the Centers for Medicare and Medicaid Services (CMS). For the first time in the program’s history, Part B premiums are going DOWN!
Let’s take a look at Medicare Part A and B numbers going into 2023.
Medicare Part B Updates
In 2022, we saw a huge increase in the Part B premium – almost $22 per month. This caught many people off guard and caused financial strain to our clients who were already on fixed incomes. The good news is that the Part B standard premium is going down in 2023. The new premium will be $164.90 – a $5.20 decrease. It may not sound like much, but it’s certainly better than the alternative!
In addition, if you are someone who pays IRMAA, the Income-Related Monthly Adjustment Amount, you’ll see those numbers change. IRMAA applies to Medicare beneficiaries with higher incomes and consists of several thresholds. In 2023, the first threshold begins at $97,000 for individuals and $194,000 for married couples filing jointly. Previously, those numbers were $91,000 and $182,000, respectively.
The Part B premium is not the only thing that’s decreasing. Its annual deductible is also going down from $233 to $226.
Medicare Part A Updates
We don’t have the same great news for Part A, but most beneficiaries won’t notice the increases here. As long as you (or your spouse) worked and paid taxes for 40 quarters, you get to enjoy premium-free Part A. If you haven’t met that requirement, your premium in 2023 is as follows:
- 30 or more quarters: $278
- Less than 30 quarters: $506
The Part A deductible also increased from $1,556 this year to $1,600 next year. Coinsurance amounts will also be increased for both hospital and skilled nursing facility stays.
Hospital Coinsurance
- Days 0-60: $0
- Days 61-90: $400
- Reserve Days (60 total): $800
Skilled Nursing Facility Coinsurance
- Days 0-20: $0
- Days 21-100: $200
Because most of our clients are enrolled in either a Medicare Supplement or Medicare Advantage plan, you are not likely to experience those coinsurance amounts. That being said, if you are enrolled in only Part A and Part B, you should absolutely discuss enrolling in a supplemental policy.
