The Centers for Medicare & Medicaid Services released the 2023 premiums, deductibles, and coinsurance amounts for Medicare Part A & B on September 27. CMS also announced the Medicare Part D Income-Related Monthly Adjustment Amounts. The new rates would go into effect in January of next year.
Medicare Part B Premium and Deductible
Medicare Part B is your Medicare coverage for durable medical equipment, home health care, doctor office visits, and outpatient healthcare services. It includes a standard Part B premium and a small annual deductible.
Each year the Centers for Medicare & Medicaid Services reviews specific costs associated with the Medicare program. In 2022, we saw the most significant Medicare Part B premium and deductible increase. The main reason cited for the dramatic increase was mainly due to a new Alzheimer’s drug Aduhelm.
Due to the projected costs being lower than the predictions, Medicare beneficiaries will pay a lower cost for the Medicare Part B deductible and monthly premium. The Medicare Part A premiums will be $5.20 lower, coming in at $164.90, while Medicare lowered the Part B deductible to $226 for 2023
Medicare Open Enrollment and Medicare Savings Programs
The Medicare Annual Enrollment Period will begin on October 15th and continue until December 7th, 2023. During this timeframe, Medicare beneficiaries can review and change their Medicare plans and programs.
Medicare has programs that assist with the Medicare costs for low-income Medicare beneficiaries. These state-run Medicare Savings Programs help with premiums, copays, coinsurance, and deductibles regarding Medicare. Your income determines your eligibility for these programs.
During the Annual Enrollment Period, beneficiaries enrolled in Original Medicare can add or switch prescription drug coverage or enroll in a Medicare Advantage plan. Likewise, beneficiaries that are currently enrolled in a Medicare Advantage plan can switch to another plan or drop their plan to return to Original Medicare and enroll in a Part D prescription drug plan.
Medicare Part B Income-Related Monthly Adjustment Amounts
Some Medicare beneficiaries will pay more than the standard Medicare Part B premium. These individuals will have an income-related monthly adjustment amount based on the income tax returns over the previous two years. The chart below shows the 2023 IRMAA for Medicare Part B.
The Income Related Monthly Adjustment Amount is based on your income from two years prior.
| Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Income-Related Monthly Adjustment Amount | Total Monthly Premium Amount in 2023 |
|---|---|---|---|
| $97,000 or less | $194,000 or less | $0.00 | $164.90 |
| $97,000 to $123,000 | $194,000 to $246,000 | $65.90 | $230.80 |
| $123,000 to $153,000 | $246,000 to $306,000 | $164.80 | $329.70 |
| $153,000 to $183,000 | $306,000 to $366,000 | $263.70 | $428.60 |
| $183,000 to $500,000 | $366,000 to $750,000 | $362.60 | $527.50 |
| $500,000 or above | $750,000 or above | $395.60 | $560.50 |
Part B Immunosuppressive Drug Coverage Only
Some Medicare beneficiaries only have Medicare Part B due to conditions requiring immunosuppressive drug coverage. The IRMAA for these specific beneficiaries is shown below.
Part B Immunosuppressive Drug Coverage Only
| Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Income-Related Monthly Adjustment Amount | Total Monthly Premium Amount |
|---|---|---|---|
| Less than or equal to $97,000 | Less than or equal to $194,000 | $0.00 | $97.10 |
| Greater than $97,000 and less than or equal to $123,000 | Greater than $194,000 and less than or equal to $246,000 | $64.70 | $161.80 |
| Greater than $123,000 and less than or equal to $153,000 | Greater than $246,000 and less than or equal to $306,000 | $161.80 | $258.90 |
| Greater than $153,000 and less than or equal to $183,000 | Greater than $306,000 and less than or equal to $366,000 | $258.90 | $356.00 |
| Greater than $183,000 and less than $500,000 | Greater than $366,000 and less than $750,000 | $356.00 | $453.10 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $388.40 | $485.50 |
Medicare Part A Premium and Deductible
Medicare Part A is your health insurance for inpatient hospital stays, skilled nursing facilities, and hospice services. Cost-sharing for Medicare Part A includes a reoccurring deductible, copayments, and coinsurance.
While the Medicare Part B deductible and monthly premiums decreased, Medicare Part A saw some slight increases. The Medicare Part A deductible increased by $44 to $1,600 per benefit period.
This Part A deductible covers the hospital’s first 60 days of inpatient services. Most beneficiaries will receive premium-free Medicare Part A. Those that worked less than 40 quarters over their lifetime will be required to pay a premium for Medicare Part A.
Part A Deductible and Coinsurance Amounts for Calendar Years 2022 and 2023
The Medicare Part A premiums, copayments, and coinsurance amounts can also change yearly. As you can see from the chart below, all Part A costs increased from 2022 to 2023.
Part A Deductible and Coinsurance Amounts for Calendar Years 2022 and 2023 by Type of Cost Sharing
| Type of Cost Sharing | 2022 | 2023 |
|---|---|---|
| Inpatient hospital deductible | $1,556 | $1,600 |
| Daily coinsurance for 61st-90th Day | $389 | $400 |
| Daily coinsurance for lifetime reserve days | $778 | $800 |
| Skilled Nursing Facility coinsurance |
$194.50 | $200.00 |
Medicare Part D Income-Related Monthly Adjustment Amounts
Similar to Medicare Part B, Medicare Part D also has an IRMAA increased amount for higher-income beneficiaries. This IRMAA impacts about 8% of all Medicare beneficiaries. While how individuals pay their plans can vary, the Medicare Part D IRMAA is deducted automatically from their monthly Social Security benefits check. The IRMAA is calculated by how you file your tax returns. The chart below shows the IRMAA amounts for Medicare Part D and the differences between filing individual or joint returns.
The Income Related Monthly Adjustment Amount is based on your income from two years prior.
| Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Income-related monthly adjustment amount for 2023 |
|---|---|---|
| Less than or equal to $97,000 | Less than or equal to $194,000 | $0.00 |
| Greater than $97,000 and less than or equal to $123,000 | Greater than $194,000 and less than or equal to $246,000 | $12.20 + Plan Premium |
| Greater than $123,000 and less than or equal to $153,000 | Greater than $246,000 and less than or equal to $306,000 | $31.50 + Plan Premium |
| Greater than $183,000 and less than $500,000 | Greater than $366,000 and less than $750,000 | $70 + Plan Premium |
| $114,000 to $1Greater than or equal to $500,000 | Greater than or equal to $750,000 | $76.40 + Plan Premium |
FAQs
What is the Medicare IRMAA for 2023?
The Income-Related Monthly Adjustment Amount begins with $97,000 for beneficiaries filing as individuals. For those filing jointly, the IRMAA starts at $194,000. The modified adjusted gross income is the amount that counts toward the income limit.
How much is the Medicare premium for 2023?
Most Medicare beneficiaries get Medicare Part A at no cost. For those that are required to pay for it, the premium will be $506 or $278. The amount you’ll pay depends on how many quarters you’ve paid Medicare taxes
What will the Medicare Part B premium be in 2023?
The Medicare Part B premium will decrease in 2023. The Centers for Medicare & Medicaid Services reduced the premium from $170.10 to $164.90
Will Medicare payments increase in 2023?
Most Medicare beneficiaries will see a premium decrease. However, individuals paying a monthly premium for Medicare Part A will see an increase in their monthly payments.
What is the Medicare Part D deductible for 2023?
The maximum deductible for a Medicare Part D plan will increase. There will be an increase of $25 to a $505 maximum allowable deductible.
Will the Medicare Part B deductible be different in 2023?
Similar to the Medicare Part B premium, the annual Part B deductible will also decrease. The new deductible will be $7 lower, coming in at $226.
What’s the average cost for the Medicare Part D premium in 2023?
The Centers for Medicare & Medicaid Services expects a slight increase in the average costs for Medicare Part D plans. The average premium will be around $31.50 for 2023
What’s the average Medicare Part C premium for 2023?
The average Part C Medicare Advantage premium projection is lower than in 2022. The Centers for Medicare & Medicaid Services estimates the average Medicare Advantage plan to cost $18 in 2023.
Conclusion
Most Medicare beneficiaries will enjoy the lower Part B premiums and deductibles. These are the most impactful costs for many beneficiaries since most don’t have to pay a premium for Part A. In addition, most Medicare enrollees will select a Medicare Supplement or Medicare Advantage plan.
Getting help with the upcoming Medicare Open Enrollment Period is easy. Our licensed insurance agents specialize in Medicare. We can help educate you on the changes and review your plan and needs. Give us a call or fill out our online request form.
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