The Medicare Part B standard monthly premium for Medicare will drop to $164.90 by 2023, a $5.20 reduction from 2022, according to the Centers for Medicare & Medicaid Services. This was announced by CMS on Sept. 27. Open enrollment for any changes to next year’s Medicare coverage starts Oct. 15th and ends Dec. 7.
This premium decrease comes after the 2022 big increase, which was the largest dollar increase in program history. Part B includes doctor visits, diagnostic tests, and other outpatient services. Part B premiums are deducted from Medicare beneficiaries’ monthly Social Security payments.
The next year’s premium reduction is in line with statements made by Health and Human Services Secretary Xavier Becerra this year that Medicare was saving money because Aduhelm, a new Alzheimer’s medication, wasn’t going to be as expensive as anticipated. This money will be passed on to beneficiaries 2023. It is also expected that spending on Part B services will be lower than previously thought.
After Aduhelm’s manufacturer lowered its price, AARP called for CMS to lower the Part-B premium for 2022. The agency also approved the medication in a limited way.
Nancy LeaMond (AARP executive vice president, chief advocacy and engagement officer) said that today’s announcement about lower Part B premiums as well as deductibles was a welcome development for seniors struggling to cope with rising inflation costs. “Reducing seniors’ Medicare expenses and the expected cost-of-living adjustment for Social Security will provide financial relief that is much needed for older Americans.”
CMS also announced premiums for Medicare enrollees with higher incomes. These charges will also decrease. Part B beneficiaries who have an annual income of more than $97,000 will be charged more for the premium. The exact amount will vary depending on income. A person filing an individual tax return with an income of $97,000-123,000 will pay $230 per month for Part B. CMS states that about 7 percent of Medicare beneficiaries pay more than the standard monthly Premium.
Medicare enrollees have to pay the Part-B premium regardless of whether they have private Medicare Advantage plans or original Medicare. Some Advantage plans provide a “giveback” benefit that covers the premium for part or all of a member’s Part B monthly premium. These plans can be found on the Medicare plan searcher. The Medicare Advantage deductibles vary from one plan to the next.
Part B deductible lower
In 2023, the annual Part B deductible is decreasing to $226. This $7 decrease is also noticeable. Starting July 1, Medicare enrollees who use a pump to administer insulin as part of their Part B durable medical equipment benefit won’t have to pay a deductible. The new Inflation Reduction Act of 2020 will cap insulin cost sharing at $35 per month.
Part A costs rise
Although most Medicare enrollees don’t pay a monthly premium to Part A (which covers inpatient hospitals, skilled nursing facilities, hospice, and other home care services), there is a deductible that must be paid for every hospital stay.
The Part A deductible for 2023 will be $1600 per stay. This is an increase of $44 over this year. The monthly premium for those who haven’t worked enough to be eligible for premium-free Part B will rise. In 2023, the full Part A premium will rise to $506 per month. This $7 increase is expected. The work history of the beneficiary and their spouse will determine whether they have to pay the full Part-A premium. Medicare Advantage beneficiaries should verify their plans for hospital charges.
Dena Bunis is a writer who covers Medicare, Health Care Policy, and Congress. Bunis also writes the AARP Bulletin column “Medicare Made Simple”. Bunis is an award-winning journalist who spent decades at metropolitan daily newspapers. She was the Washington bureau chief for Orange County Register and was also a Health Policy and Workplace writer for Newsday.
