On September 27, 2022, the Centers for Medicare and Medicaid Services (CMS) announced that both the Medicare Part B premium and deductible would decrease in 2023. Likewise, Medicare Part B IRMAA paid by higher-earning Medicare beneficiaries would decrease slightly. However, the 2023 Medicare Part A deductible, cost-sharing, and the 2023 Part A premium will increase slightly.
Reminder: What is Medicare Part A and Part B?
Medicare Part A is coverage of your inpatient, skilled nursing facility, hospice, home health, and hospital care.
Medicare Part B is coverage of your doctor visits, home health care, durable medical equipment (such as wheelchairs), preventative care, and outpatient care.
In more detail, CMS notes: "[Medicare] Part B is the voluntary portion of the Medicare program that pays all or part of the costs for physicians’ services; outpatient hospital services; certain home health services; services furnished by rural health clinics, ambulatory surgical centers, and comprehensive outpatient rehabilitation facilities; and certain other medical and health services not covered by Medicare Part A, Hospital Insurance.
Medicare Part B is available to individuals who are entitled to Medicare Part A, as well as to U.S. residents who have attained age 65 and are citizens and to non-citizens who were lawfully admitted for permanent residence and have resided in the United States for 5 consecutive years. Part B requires enrollment and payment of monthly premiums...." [formatting added]
Reminder: What is Medicare Part A and Part B?
Medicare Part A is coverage of your inpatient, skilled nursing facility, hospice, home health, and hospital care.
Medicare Part B is coverage of your doctor visits, home health care, durable medical equipment (such as wheelchairs), preventative care, and outpatient care.
In more detail, CMS notes: "[Medicare] Part B is the voluntary portion of the Medicare program that pays all or part of the costs for physicians’ services; outpatient hospital services; certain home health services; services furnished by rural health clinics, ambulatory surgical centers, and comprehensive outpatient rehabilitation facilities; and certain other medical and health services not covered by Medicare Part A, Hospital Insurance.
Medicare Part B is available to individuals who are entitled to Medicare Part A, as well as to U.S. residents who have attained age 65 and are citizens and to non-citizens who were lawfully admitted for permanent residence and have resided in the United States for 5 consecutive years. Part B requires enrollment and payment of monthly premiums...." [formatting added]
A summary of the changes to 2023 Medicare Part A and Medicare Part B premiums and deductibles includes:
- A decrease in 2023 Medicare Part B Premium.
Last year, the 2022, Medicare Part B premium increased increased significantly - in part - due to the possible cost related to the new Alzheimer’s drug, Aduhelm™ with the standard 2022 Medicare Part B premium increasing to $170.10 - a $21.60 per month jump over the 2021 Medicare Part B premium of $148.50.
However, the 2023 Part B premium will decease $5.20 to $164.90 - in part - due to lower-than-expected spending on Aduhelm.
CMS noted that "[l]ower-than-projected spending on both Aduhelm and other Part B items and services resulted in much larger reserves in the Part B account of the Supplementary Medical Insurance (SMI) Trust Fund, which can be used to limit future Part B premium increases."
- New for 2023: Medicare enrollees who are 36-post-kidney transplant can now pay a Part B premium
In their press release, CMS announced a new program where "certain Medicare enrollees who are 36 months post kidney transplant, and therefore are no longer eligible for full Medicare coverage, can elect to continue Part B coverage of immunosuppressive drugs by paying a premium. For 2023, the immunosuppressive drug premium is $97.10."
- A decrease in the 2023 Part B Deductible.
The annual 2023 deductible for all Medicare Part B beneficiaries is $226 - a $7 decrease from the 2022 of $233.
(As reference, the annual 2021 deductible was $203, the 2020 Part B deductible was $198 and the Part B deductible in 2019 was $185.)
- 2023 Part B IRMAA decreases (just slightly for some).
Higher Part B and Part D premiums for high-earning Medicare beneficiaries: About 7% of higher-earning Medicare beneficiaries will pay more for their Medicare Part B coverage (and their Medicare Part D drug plan coverage) through a Part B or Part D Income-related monthly adjustment amount (IRMAA).
Along with their 2023 Part B premiums, the Part B Income-related monthly adjustment amount (IRMAA) will decrease for individuals earning over $97,000 or couples earning over $194,000. To learn more, please see our article:
"2023 IRMAA: Slight decrease in Medicare Part D IRMAA payments along with changes in the IRMAA brackets due to annual inflation adjustments"
- A slight increase in 2023 Medicare Part A Deductible (and cost-sharing).
The 2023 Medicare Part A deductible will be $1,600 - a $44 increase over the 2022 Part A deductible $1,556.
(As reference, the 2022 Part A deductible was an increase of $72 over the 2021 Part A deductible of $1,484 - the Part A deductible was $1,408 in 2020 and the 2019 Part A deductible was $1,364.)
As noted by CMS: "The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period. In 2023, beneficiaries must pay a coinsurance amount of $400 per day for the 61st through 90th day of a hospitalization ($389 in 2022) in a benefit period and $800 per day for lifetime reserve days ($778 in 2022). For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $200.00 in 2023 ($194.50 in 2022)."
- A slight increase in 2023 Medicare Part A Premium for certain Medicare beneficiaries.
As noted by CMS: "About 99 percent of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment.... Enrollees age 65 and over who have fewer than 40 quarters of coverage and certain persons with disabilities pay a monthly premium in order to voluntarily enroll in Medicare Part A.
Individuals who had at least 30 quarters of coverage or were married to someone with at least 30 quarters of coverage may buy into Part A at a reduced monthly premium rate, which will be $278 in 2023, a $4 increase from 2022. Certain uninsured aged individuals who have less than 30 quarters of coverage and certain individuals with disabilities who have exhausted other entitlement will pay the full premium, which will be $506 a month in 2023, a $7 increase from 2022." [formatting added]
https://www.cms.gov/newsroom/fact-sheets/2023-medicare-parts-b-premiums-and-deductibles
-2023-medicare-part-d-income-related-monthly
https://www.cms.gov/newsroom/press-releases/cms-announces-2022-medicare-part-b-premiums
https://www.cms.gov/newsroom/press-releases/2021-medicare-part-b-premiums-remain-steady
https://www.cms.gov/newsroom/fact-sheets/2022-medicare-parts-b-premiums-and-deductibles 2022-medicare-part-d-income-related-monthly-adjustment
https://www.cms.gov/newsroom/fact-sheets/2021-medicare-parts-b-premiums-and-deductibles
https://www.medicare.gov/your-medicare-costs/medicare-costs-at-a-glance
https://www.cms.gov/files/document/2021-medicare-trustees-report.pdf
https://www.cms.gov/newsroom/press-releases/cms-announces-2022-medicare-part-b-premiums
https://www.cms.gov/newsroom/press-releases/2021-medicare-part-b-premiums-remain-steady
https://www.cms.gov/newsroom/fact-sheets/2022-medicare-parts-b-premiums-and-deductibles 2022-medicare-part-d-income-related-monthly-adjustment
https://www.cms.gov/newsroom/fact-sheets/2021-medicare-parts-b-premiums-and-deductibles
https://www.medicare.gov/your-medicare-costs/medicare-costs-at-a-glance
https://www.cms.gov/files/document/2021-medicare-trustees-report.pdf