Medicare Open enrollment begins October 15 and continues through December 7. Recently, the Centers for Medicare & Medicaid Services announced Medicare Part B and A costs for 2023. Medicare costs tend to rise year after year. You may be surprised to find that while some costs will increase again in 2023 you can expect some to actually decrease. Here are some details:
Medicare part A – includes inpatient hospitalizations and care in skilled nursing facility, hospice care, inpatient rehab, as well as some home health services.
The Part A premiums are expected to increase a little in 2023. However, most people will not have to pay any premiums for Part A if they or their spouse worked over 10 years and paid Medicare taxes. For those who don’t qualify for the “premium free Part A”, their monthly premium will be either $278 or $506 (up from $274 in 2022 or $499 in 2020), depending on whether they worked or paid Medicare taxes.
The Part A deductible is only applicable to the first sixty days of an inpatient stay. A “benefit period” is the term used to describe each hospital stay. In 2023, the deductible will increase by $44 and reach $1600. You can have several benefit periods within a year, and you must pay the deductible for each one.
Medicare Part A recipients incur costs (called copayments) for longer hospital stays. In 2023, the copayments will increase.
- Days 1-60: $0
- Days 61 to 90: $400 daily copayment (up from $389 by 2022).
- Days 91 to 150: Copayment of $800 per day (up $778 from 2022).
- After Day 150: Patient pays for all costs
Medicare part B – includes items like doctors, other health care providers and outpatient and home health services, as well medical equipment, vaccines, and preventative care such as yearly wellness visits and vaccinations.
In 2023, the base monthly Medicare Part B premium will be $164.90. This is a $5.20 decrease (3% compared to 2022).
- It is the only third time since the 1965 signing of the Medicare law by President Lyndon Johnson that the Part B Premium has decreased.
- The premium has not changed for 11 years.
- In 2022, the largest increase in premium was $21.60 (14.5%) and reached $170.10.
As shown in the following table, the additional premium paid by high-income earners (called Income Related Monthly Adjustment amount or IRMAA) is also reduced.
In 2023, the annual deductible for Medicare Part B beneficiaries is set to be $226. This is down from $233.
After the deductible is paid, the Medicare Part B beneficiary will pay 20% of the Medicare approved amount for services or items. Coinsurance is the term used to describe the 20% that Medicare beneficiaries pay.
People who choose original Medicare often purchase Part D policies (prescription coverage), and Medigap plans (also known as “Medicare Supplement Plans”), from private insurers, to cover copayments, deductibles and coinsurance. Some people choose to purchase Part C (Medicare advantage plans sold by private insurers), instead of Part D or Medigap, in order to cover their out-of-pocket costs and receive additional services. When making your choice, be sure to weigh the pros and cons between Original Medicare and Medicare Affiliation.
