Rates for Medicare Part B will decrease in cost beginning in 2019, but premiums for Medicare Part A will increase slightly. Why? In accordance with the Social Security Act, the Social Security Administration (SSA) modifies Medicare expenses annually by increasing or decreasing premiums and deductibles.
Changes have also been made to the income thresholds and adjustment levels for Medicare Part D drug coverage. Furthermore, the Social Security cost-of-living rise for 2023 has been revealed. In an October White House briefing, Press Secretary Karine Jean-Pierre remarked, “This means that seniors will have a chance to pull ahead of inflation, due to the uncommon combination of rising benefits and reducing premiums.”
Here are the percentage and dollar amount shifts for Medicare Part B and Part A beneficiaries in 2019. Also, remember that the Medicare enrollment deadline was December 7th.
How much less will Medicare Part B cost in 2023?
It won’t be drastically lower than what you’re paying now, but it will be better than nothing. Here is how the costs of Medicare Part B complete coverage will be covered in the year 2023.
The average monthly premium will drop to $164.90 in 2023 from 2022’s $170.10 level, a savings of $5.20.
The deductible in 2023 is $226, down from $233 the previous year.
Medicare Part B premiums will increase by a small amount if your annual income is more than $97,000 for an individual taxpayer or $194,000 for a married couple filing jointly. The following are the income-related changes for 2023’s universal coverage under Part B.
Why is Medicare Part B cheaper in 2023?
In May, the Centers for Medicare and Medicaid Services suggested that beneficiaries of Medicare Part B receive any surplus funds from the Supplementary Medical Insurance Trust Fund. The premium and deductibles will be lowered as a result. Part A of Medicare is provided at no cost to most people, however everyone is responsible for covering the cost of Part B.
The cost of the experimental Alzheimer’s disease medicine Aduhelm was expected to be covered by this year’s Part B premium. Since less money was spent on that medicine and other Part B products, there were more reserves in the Part B account of the SMI fund, and those reserves will now be utilized to prevent future rises in Part B premiums.
Medicare Part A premiums and deductibles are going up in 2023
Premiums for Medicare Part B will decrease next year, but those who pay for Medicare Part A will experience very minor increases. Individuals with over 30 calendar quarters of service (but less than 40) will pay $278 per month, up from $274 in 2022. The monthly premium for those with a less-than-ideal employment history will increase to $506 in 2022, from $499 the previous year.
Note that if you’ve worked for at least 40 calendar quarters (10 complete years) and paid Medicare taxes, you don’t have to pay anything for Part A of Medicare.
Medicare Part A deductibles are also increasing, at around 2.8% year. This is a rundown of the current situation.
The inpatient hospital deductible will rise to $1,600 in 2023 from $1,556 in 2022, a change of $44.
From day 61 to day 90, coinsurance will cost $400 per day in 2023, up $11 from the $389 per day charged in 2022.
In 2023, the daily coinsurance rate for lifetime reserve days will rise to $800, an increase of $22 from 2022’s rate of $778.
In 2023, the copayment for a stay in a nursing home will be $200, up $5.50 from the corresponding figure for 2022.
What are the 2023 income adjustments for Medicare Part D?
Prescription drug coverage under Medicare Part D got a huge boost this year thanks to the Inflation Reduction Act, but it comes with a price: beneficiaries with incomes above a particular threshold will be required to pay an additional amount each month. From 2022, there hasn’t been much of an increase in the adjustment amounts across the board, but the income tiers themselves have increased by around 6%.
What do Medicare Parts A and B cover?
Hospital stays, skilled nursing care, hospice care, in-patient rehabilitation, and some home health care are all covered under Medicare Part A.
Medical and health services not covered by Medicare Part A are covered by Medicare Part B. This includes visits to doctors and other healthcare professionals, hospital outpatient treatment, some forms of home health care, some types of durable medical equipment, and more.