Medicare
Medicare recipients will see a reduction in their Medicare Part B premiums for 2023.
The Centers for Medicare and Medicaid Services [CMS] adjusts coinsurance, deductible, and premium amounts for Medicare Parts A and B each year. For many years, including in recent years, the premium and deductible for Medicare Part B have increased. Recently, CMS released the premium and deductible amounts for Part B for 2023.
Lower Medicare Part B premiums for 2023
Medicare recipients will see a reduction in their Medicare Part B premiums for 2023. The new monthly premium will be $164.90, a decrease of $5.20 per month. The lower premium is a welcome change after the jump that recipients experienced in 2022. The monthly premium for Part B in 2021 was $148.50 and skyrocketed to $170.10 in 2022 based on the CMS estimate of the cost of the drug Aduhelm, used to treat Alzheimer’s disease. However, the Medicare program spent much less than expected on the primary drug used to treat Alzheimer’s, and recipients in 2023 will get some relief as a result.
The new monthly Medicare Part B premium will be $164.90, a decrease of $5.20 per month.
Lower Medicare Part B deductible for 2023
In addition to the expected Medicare Part B premium reduction, recipients can also expect to see a lower deductible. The Medicare Part B deductible for 2023 will be $226, $7 lower than the 2022 Medicare Part B deductible.
The Medicare Part B deductible for 2023 will be $226, $7 lower than the 2022 Medicare Part B deductible.
When do the changes to Medicare Part B premiums take effect?
Although CMS has announced the new rates, people will not see changes in their premiums or deductibles until January 2023. The new premium and deductible will be in place for all of 2023. However, Medicare Open Enrollment begins October 15 and ends December 7, 2022. People who have Medicare Advantage are also affected by the change in Part B premiums and should check the premium and cost-sharing information that Medicare Advantage plan providers release ahead of open enrollment.
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What is Medicare Part B?
Medicare Part B is often called medical insurance, and it covers both preventive and medically necessary services. Most of the Part B care patients receive is outpatient care. Part B also covers durable medical equipment. Part B can also cover ambulance services, mental health services, and even some outpatient prescription drugs. As a result, Medicare recipients rely on Medicare Part B for a large portion of their healthcare.
Other changes announced by the CMS for 2023
The CMS announced other changes to Medicare for 2023. Most people in 2023 will pay the standard premium of $164.90. However, a Medicare recipient’s Part B premium is based on income. In 2023, there will be changes to the income-related monthly adjustment amounts [IRMAAs]. The CMS estimates these changes will affect around seven percent of Medicare recipients. IRMAAs will rise from $91,000 in 2022 to $97,000 in 2023 for a single beneficiary. The amount for married people filing a joint tax return will increase from $182,000 in 2022 to $194,000 in 2023. This change in the IRMAAs will allow more people to take advantage of the standard rate rather than paying the next tier. The maximum premium for Medicare Part B in 2023 will be $560.50 for those with IRMAAs equal to or greater than $500,000.
Learn more about Medicare Part B with this ultimate guide to Medicare Part B from Hella Health.
The Centers for Medicare & Medicaid Services [CMS] has announced that the standard monthly Part B premium will be $164.90 in 2023, a decrease of $5.20 from $170.10 in 2022. This follows an increase of $21.60 in the 2022 premium, largely due to the cost of a new Alzheimer’s drug. Changes in the drug’s use and price, along with other Part B items and services, led to larger financial services that resulted in the lowered premium for next year.
Certain beneficiaries will continue to pay higher premiums based on their modified adjusted gross income. The monthly Part B premiums that include income-related adjustments for 2023 will range from $230.80 to $560.50, depending on the extent to which an individual beneficiary’s modified adjusted gross income exceeds $97,000 [or $194,000 for a married couple]. The highest rate applies to beneficiaries whose incomes exceed $500,000 [or $750,000 for a married couple]. CMS estimates that about 7 percent of Medicare beneficiaries pay the income-adjusted premiums.
Beneficiaries in Medicare Part D prescription drug coverage plans pay premiums that vary from plan to plan. Part D beneficiaries whose modified adjusted gross income exceeds the same income thresholds that apply to Part B premiums also pay a monthly adjustment amount. In 2023, the adjustment amount ranges from $12.20 to $76.40.
The Railroad Retirement Board withholds Part B premiums, Part B income-related adjustments and Part D income-related adjustments from benefit payments it processes. The agency can also withhold Part C and D premiums from benefit payments if an individual submits a request to his or her Part C or D insurance plan.
The following tables show the income-related Part B premium adjustments for 2023. The Social Security Administration [SSA] is responsible for all income-related monthly adjustment amount determinations. To make the determinations, SSA uses the most recent tax return information available from the Internal Revenue Service. For 2023, that will usually be the beneficiary’s 2021 tax return information. If that information is not available, SSA will use information from the 2020 tax return.
Railroad retirement and social security Medicare beneficiaries affected by the 2023 Part B and D income-related premiums will receive a notice from SSA by the end of the year. The notice will include an explanation of the circumstances when a beneficiary may request a new determination. Persons who have questions or would like to request a new determination should contact SSA after receiving their notice.
Additional information about Medicare coverage, including specific benefits and deductibles, can be found at Medicare.gov.
2023 PART B PREMIUMS
| 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 |
| $500,000 and above | $750,000 and above | $395.60 | $560.50 |
The monthly premium rates paid by beneficiaries who are married, but file a separate return from their spouses and who lived with their spouses at some time during the taxable year, are different. Those rates are as follows:
| Less than or equal to $97,000 | $0.00 | $164.90 |
| Greater than $97,000 and less than $403,000 | $362.60 | $527.50 |
| $403,000 and above | $395.60 | $560.50 |
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