New Medicare Premiums Announced for 2023
As you might already know, Medicare plans rarely remain exactly the same from one year to the next. Premiums are frequently adjusted, particularly to Part B or Medicare Advantage plans, and costs like deductibles and co-payments can change as well. Medicare Part A does not charge a monthly premium of most beneficiaries, assuming they accumulated enough work credits during their lifetimes.
The Centers for Medicare & Medicaid Services (CMS) has just released Part B premiums for 2023, and we have some good news. The standard monthly premium for this part of Medicare will actually decrease just slightly, by just over 5 dollars, to $164.90 monthly. In addition, the standard Part B deductible (the amount you must pay toward your medical expenses for the year, before the plan kicks in to cover the rest) will decrease by 7 dollars to $226.
Of course, not all Medicare beneficiaries pay the standard premiums. About 7 percent of Medicare recipients fall into higher income brackets, and must pay adjusted monthly premiums. If you fall into one of the tax brackets above $97,000 annually (for individuals) or $194,000 annually (for couples filing a joint return) you should consult with your insurance broker to learn your new monthly premium amount.
As for Medicare Part A, about 99 percent of beneficiaries do meet the minimum work credit requirement to qualify for free premiums. But an annual deductible does still apply to coverage. If you’re admitted to the hospital, the deductible represents your share of the expenses, that must be paid before insurance covers the rest. In 2023, the Medicare Part A deductible will increase to $1,600, an increase of $44 over this year’s deductible.
That deductible applies to the first 60 days of any covered hospital stay. After 60 days, a coinsurance charge of $400 dollars per day will be charged on the 61st through 90th day of your stay (up from $389 this year). After 90 days the coinsurance charge increases to $800 per day (up from $778).
If you have questions about Medicare Part A or B premiums, deductibles, or coinsurance charges, call one of our representatives. The Annual Election Period is open from October 15 through December 7, giving you the chance to make changes to your plan(s) if you find it necessary.