Why You Will Pay Less for Medicare in 2023

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During this time of high inflation rates, seniors will be glad to hear that some Medicare plan costs will be reduced in 2023. It is certainly good news after hearing that the cost-of-living adjustment (COLA) is higher for 2023 than it has been for a long time. It means seniors will not have to spend their newly gained extra money on Medicare.

Last year, seniors with Medicare Part B saw an increase of 14.5 percent ($25.50), bringing the total cost to $170.10. In comparison, the cost of Part B was only raised by $3.90 in 2021.

The larger-than-usual increase in Medicare coverage premiums in 2022 was because of the high cost of a new drug for patients with Alzheimer’s disease. Medicare assumed that the pricey drug would be in greater demand than it was and raised Medicare prices because of it.

Forbes says that the drug was called Adulhelm. The Centers for Medicare and Medicaid (CMS) later reduced the coverage. Kiplinger reported that Medicare would only pay for it for people involved in clinical trials. This action forced the manufacturer to reduce the price.

Medicare Part B

The biggest reduction in Medicare premiums will take place in Medicare Part B, which covers services provided by doctors, outpatient hospital care, some home health care, durable medical equipment, and more. The decrease, according to the CMS, will be $5.20, bringing the 2023 cost down to $164.90. Even though Part B premiums were increased by 14.5 percent in 2022, the new decrease is only about 3 percent.

Every time you use Medicare Part B, you will pay a deductible up to a maximum amount. The deductible amount for 2022 was $233. The amount has also been reduced by Medicare, bringing the new deductible down by $7.00, making it just $226 for 2023.

Veterans and Medicare

Veterans may choose to go without Medicare Part B and get their medical needs taken care of through the Department of  Veterans Affairs (VA; it was formerly known as the Veterans Administration). If they decide to get it later, they will likely be charged more for it.

Medicare Part D Costs

The premiums for Medicare Part D also have been decreased for 2023, but not by much. The reduction is only $0.58, which means it drops from $32.08 to $31.50.

One of the best benefits comes to those who are on insulin. The Inflation Reduction Act has forced drug companies to lower the price of insulin to $35 for a one-month supply. Kiplinger mentions that immunizations recommended by the Advisory Committee on Immunization Practices will not charge people on Medicare.

Premiums for Part B Increased for People With Higher Incomes

Medicare has several income brackets used to determine how much your premiums will be each year. The Social Security Administration (SSA) sets them annually, and your bracket is based on your reported income from two years previously. The rates are called an Income-Related Monthly Adjustment Amount (IRMAA). When the SSA expects you to pay an IRMAA, they will notify you.

CMS.Gov provides information about the new IRMAA rates for 2023. Every income bracket was increased several thousand dollars for 2023.

Individuals who made $97,000 or less will pay $164.90 per month in 2023 for Part B. Those who made $97,000 up to $123,000 will have to pay $230.80. The next bracket includes those who made $123,000 up to $153,000—they will have to pay $329.70. Singles who make $153,000 up to $183,000 will need to pay $428.60, and those who make $183,000 up to $500,000 will have to pay $527.50. The highest bracket is for those who make more than $500,000—they will pay $560.50 per month.

Increases for Medicare Part A

Most people do not need to pay for Medicare Part A. It is free if you have worked 40 calendar quarters, equal to 10 full years.

People who have worked less than 40 quarters, but more than 30, says CNET, will have a slight increase in their monthly Medicare premiums. Their 2023 payments have increased by $4.00 per month, going from $274 to $278. Those who have worked less than 30 quarters will have to pay $7.00 more, going from $499 to $506 per month.

Everyone’s Costs for Medicare Part A Will Be Increased

Even though most people do not need to pay for Medicare Part A, CNET reports an increase of about 2.8 percent in the deductibles. The largest increase is $44 for the cost of inpatient hospital, bringing it to $1,600. The coinsurance amounts for hospital stays from the sixty-first day through the ninetieth day have an increase of $11.00, bringing it up to $400.

Medicare gives patients what are called 60 reserve days in a hospital beyond the 90 days. Medicare calls them lifetime reserve days, and they are the lifetime limit. During those lifetime reserve days, all covered expenses are paid for—except the coinsurance, which will be $800 per day—an increase of $22.00.

Coinsurance for a skilled nursing facility has also risen just a little. The new cost will be $200 per day—$5.50 more than in 2022.

Medicare Advantage Plans

Medicare Advantage Plans (Medicare Part C) combines Medicare Parts A, B, and D. Part C, which is offered by private companies, provides more benefits than original Medicare. These extra services often include vision, dental, hearing care, and may offer some vitamin supplements, over-the-counter medications, fitness programs, and other supplies. The benefits may differ with each company.

More people are getting Advantage Plans because of the additional benefits that original Medicare does not provide. Health and Human Services (HHS) expect to enroll 31.8 million people next year. The average cost for an Advantage Plan for 2023, above the cost of Medicare Parts B and D, is $18.00—down from $19.52 last year. Some Advantage Plans do not charge for this benefit if you have Part B through their company.

If you have not yet enrolled in Medicare, you can do so only during Medicare open enrollment—except for the seven months around your birthday—three months before your birthday month, and three months afterward. It is not necessary to start Social Security at the same time—if you choose to wait—Medicare can bill you for it.

The Epoch Times Copyright © 2022 The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.