At the end of September, the Centers for Medicare & Medicaid Services (CMS) released the 2023 Medicare premiums, deductibles and coinsurance amounts for Medicare Parts A and B, as well as the Medicare Part D income-related monthly adjustment amounts.
Medicare Part B Premium & Deductible
Medicare Part B is outpatient insurance. It covers some doctors’ fees, outpatient hospital visits and other specified medical services and supplies not covered by Part A. Each year, the Part B premium, deductible and coinsurance rates are determined according to the Social Security Act.
In 2023, the standard monthly premium for Medicare Part B enrollees will be $164.90, a decrease of $5.20 from the $170.10 monthly premium in 2022. The annual deductible for all Medicare Part B beneficiaries will be $226 in 2023, a decrease of $7 from the annual deductible of $233 in 2022.
According to the CMS, the decreases are due to a decline in the price of the Alzheimer’s drug Aduhelm and limitations on its usage. This Alzheimer’s drug was the main factor for the increase in monthly Part B premiums in 2022.
Beginning in 2023, Medicare enrollees who are 36 months post-kidney transplant–and therefore are no longer eligible for full Medicare coverage–can choose to continue Part B coverage of immunosuppressive drugs by paying a premium of $97.10.
Medicare Part B Income-Related Monthly Adjustments
Since 2007, the Medicare Part B monthly premium amount has been based on a beneficiary’s income. These income-related monthly adjustment amounts only affect around seven percent of those with Medicare Part B. The 2023 Part B total premiums for high-income beneficiaries with full Part B coverage are shown below:
| Full Part B Coverage | |||
|
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 |
$164.90 |
|
Greater than $97,000 and less than or equal to $123,000 |
Greater than $194,000 and less than or equal to $246,000 |
$65.90 |
$230.80 |
|
Greater than $123,000 and less than or equal to $153,000 |
Greater than $246,000 and less than or equal to $306,000 |
$164.80 |
$329.70 |
|
Greater than $153,000 and less than or equal to $183,000 |
Greater than $306,000 and less than or equal to $366,000 |
$263.70 |
$428.60 |
|
Greater than $183,000 and less than $500,000 |
Greater than $366,000 and less than $750,000 |
$362.60 |
$527.50 |
|
Greater than or equal to $500,000 |
Greater than or equal to $750,000 |
$395.60 |
$560.50 |
The 2023 Part B total premiums for high-income beneficiaries with immunosuppressive drug-only Part B coverage are 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 |
The 2023 premiums for high-income beneficiaries with full Part B coverage, who are married and lived with their spouse at any time during the taxable year, but file a separate return, are below:
| Full Part B Coverage | ||
| Beneficiaries who are married and lived with their spouses at any time during the year, but who file separate tax returns from their spouses, with modified adjusted gross income: | Income-Related Monthly Adjustment Amount | Total Monthly Premium Amount |
| Less than or equal to $97,000 | $0.00 | $164.90 |
| Greater than $97,000 and less than $403,000 | $362.60 | $527.50 |
| Greater than or equal to $403,000 | $395.60 | $560.50 |
The 2023 premiums for high-income beneficiaries with immunosuppressive drug-only Part B coverage, who are married and lived with their spouse at any time during the taxable year, but file a separate return, are below:
| Part B Immunosuppressive Drug Coverage Only | ||
| Beneficiaries who are married and lived with their spouses at any time during the year, but who file separate tax returns from their spouses, with modified adjusted gross income: | Income-Related Monthly Adjustment Amount | Total Monthly Premium Amount |
| Less than or equal to $97,000 | $0.00 | $97.10 |
| Greater than $97,000 and less than $403,000 | $356.00 | $453.10 |
| Greater than or equal to $403,000 | $388.40 | $485.50 |
Medicare Part A Premium & Deductible
Medicare Part A is hospital insurance. It covers some inpatient hospital care, limited skilled nursing care, hospice care and other specified services. Part A is typically premium-free.
For Part A, the inpatient hospital deductible will be $1,600 in 2023, an increase of $44 from $1,556 in 2022. This Part A inpatient hospital deductible covers a Medicare beneficiary’s’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period.
In 2023, Medicare Part A beneficiaries must pay a coinsurance amount of $400 per day for the 61st through 90th day of an inpatient hospitalization (compared to $389 in 2022) in a benefit period, and $800 per day for lifetime reserve days (compared to $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 (compared to $194.50 in 2022).
Medicare Part D Income-Related Monthly Adjustments
Medicare Part D, or prescription drug plans (PDPs), help pay the cost of prescription medications. PDPs are offered by private insurance companies and cover a portion of your prescription drug expenses.
For Part D, the monthly premiums of higher-income beneficiaries are adjusted based on income. These monthly adjustment amounts only affect around eight percent of people with Medicare Part D coverage. These beneficiaries will pay the monthly adjustment amount, in addition to their Part D premium.
The 2023 Part D income-related monthly adjustment amounts for high-income beneficiaries are shown below:
| 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 |
| 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 |
| 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 |
| Greater than $153,000 and less than or equal to $183,000 | Greater than $306,000 and less than or equal to $366,000 | 50.70 |
| Greater than $183,000 and less than $500,000 | Greater than $366,000 and less than $750,000 | 70.00 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | 76.40 |
Premiums for high-income beneficiaries who are married and lived with their spouse at any time during the taxable year, but file a separate return, are below:
| Beneficiaries who are married and lived with their spouses at any time during the year, but file separate tax returns from their spouses, with modified adjusted gross income: | Income-related monthly adjustment amount |
| Less than or equal to $97,000 | $0.00 |
| Greater than $97,000 and less than $403,000 | 70.00 |
| Greater than or equal to $403,000 | 76.40 |
…
Medicare open enrollment for 2023 begins on October 15th, 2022 and ends on December 7th, 2022. During this time, people eligible for Medicare can compare 2023 coverage options between Original Medicare, Medicare Advantage and Part D prescription drug plans. For help navigating this open enrollment period, contact Crumes Insurance today. Consultations are always free, and utilizing a Medicare agent doesn’t cost you anything!
Source: CMS.gov