The Centers for Medicare & Medicaid Services (CMS) have announced the 2023 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs.
A decrease in the 2023 Part B premium reflects the recommendation of CMS from a May 2022 report. As a result of lower-than-projected spending on both Aduhelm™, a drug used in treating Alzheimer’s disease, and other Part B items and services, it was decided to distribute the surplus to Medicare Part B beneficiaires via an overall Part B premium discount.
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Part B Premium Reflects Decrease for All Medicare Part B Beneficiaries
On Tuesday, September 27, CMS announced that the monthly Medicare Part B premium will be $164.90 for 2023, a decrease of $5.20 from $170.10 in 2022. The annual deductible for Medicare Part B beneficiaries decreased $7, from $233 in 2022 to $226 in 2023.
New for 2023, certain Medicare enrollees who are 36 months post kidney transplant, making them ineligible for full Medicare coverage, can elect to continue Part B coverage of immunosuppressive drugs by paying a premium of $97.10 for 2023.
Here’s how your clients’ annual incomes will affect their Medicare Part B monthly premiums for 2023.
|File Individual Tax Return||File Joint Tax Return||Monthly Adjustment||2023 Part B Monthly Premium|
|$97,000 or Less||$194,000 or Less||$0.00||$164.90|
|$97,001 to $123,000||$194,001 to $246,000||$65.90||$230.80|
|$123,001 to $153,000||$246,001 to $306,000||$164.80||$329.70|
|$153,001 to $183,000||$306,001 to $366,000||$263.70||$428.60|
|$183,001 to $500,000||$366,001 to $750,000||$362.60||$527.50|
|$500,000 or More||$750,000 or More||$395.60||$560.50|
|File Separate Tax Return from Spouse||Monthly Adjustment||2023 Part B Monthly Premium|
|$97,000 or Less||$0.00||$164.90|
|$97,001 to $402,999||$362.60||$527.50|
|$403,000 or More||$395.60||$560.50|
Medicare Part A is premium-free for more than 99 percent of beneficiaries. Less than one percent of Medicare beneficiaries must pay the Part A premium because they do not have at least 40 quarters of Medicare-covered employment. Those who have paid Medicare taxes for less than 30 quarters will pay a Part A premium of $506 per month in 2023, up from $499 per month in 2022 — a $7 increase. Beneficiaries who have paid Medicare taxes for at least 30 quarters or were married to someone with at least 30 quarters of coverage will pay a Part A premium of $278 per month in 2023, up from $274 per month in 2022.
The Medicare Part A inpatient hospital deductible that beneficiaries will pay when admitted to the hospital for 2023 will be $1,600, which is an increase of $44 from $1,556 in 2022.
|Type of Cost Sharing||2022||2023|
|Inpatient Hospital Deductible||$1,556||$1,600|
|Daily Coinsurance for Days 61 to 90||$389||$400|
|Daily Coinsurance for Lifetime Reserve Days||$778||$800|
|Skilled Nursing Facility Coinsurance||$194.50||$200|
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The best insurance agents are the most knowledgeable about information like this that directly impacts the abilities of their clients to afford quality Medicare coverage. By staying up to date, you can serve as a well-informed, reliable, and trusted guide for your clients throughout the insurance sales process.
Editor’s Note: Table information is from The Centers for Medicare & Medicaid Services.