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.
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.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.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.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.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.
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.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.
