An estimated 64 million Americans are enrolled in Medicare, a critical program that makes healthcare more affordable for retirees. As with many types of medical coverage, the cost of Medicare can change over time. Additionally, the included benefits may vary from year to year.
As a Medicare user, it’s critical to understand how various changes could impact your benefits. Otherwise, you might find yourself ill-prepared for changing costs.
While 2023 does have some price declines, there are also cost increases to contend with if you’re a Medicare enrollee. Whether the reductions offset the increases can vary, as some of the shifted prices are tied to the use of specific services. However, others are broadly impacting all Medicare enrollees, regardless of how much they use their coverage.
Ultimately, understanding what’s different when it comes to 2023 Medicare costs is essential if you want to update your budget or financial plan. Here’s what you need to know about the 2023 Medicare changes.
Part B Premium Declines
In 2023, Medicare Part B premiums are declining. As a result, many Medicare Part B enrollees will have a little more money in their pockets every month, which is helpful overall.
The standard monthly premium for Medicare Part B in 2023 is $164.90. That represents a $5.20 decrease compared to the $170.10 rate in 2022.
High-earning Medicare Part B enrollees may also see a premium decline. While the exact amount they pay for premiums can vary based on income level, the starting rate is $230.90 per month in 2023. In 2022, the starting rating was $238.10, so premiums declined by $7.20.
Deductible Decreases
Medicare users will see specific deductibles drop in 2023. The primary way is via a reduction in the Medicare Part B deductible, which is actually the first drop in the Part B deductible in a decade. The deductible for Part B is $226 in 2023. That’s $7 less than the deductible in 2022.
Some Medicare users who are signed up for Medicare Advantage plans or Medicare Part D prescription drug coverage may also see a decline in their deductibles, though that isn’t guaranteed. Where you live and the precise plan you pick will play a role. However, it’s critical to note that the Part D deductible limit set by the government did rise in 2023, shifting to $505 from $480 in 2022.
Part A Costs Increase
In 2023, Medicare Part A costs are generally set to rise. For example, for inpatient hospital care, the deductible is increasing from $1,556 in 2022 to $1,600 in 2023. The daily coinsurance for the 61st through 90th days is also rising, shifting from $389 in 2022 to $400 in 2023. Skilled nursing coinsurance is going up to $200, while the daily coinsurance for lifetime reserve days is rising to $800.
Those who don’t qualify for a premium-free Medicare Part A will also see a rise in their monthly premium. While the rate was $499 in 2022, the monthly payment reached $506 per month in 2023. That’s a $7 increase.
