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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.
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.
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.
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.
