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Medicare Part B Premium Will Decrease in 2023

AnnaMarie Morrow

It’s not very often that we get to tell you about the cost of something going down, but today is that day! The government announced this week that the standard Part B premium will drop by 3% in 2023 to $164.90. That’s $5.20 lower than this year. The annual deductible for Part B will be $226 in 2023, a decrease of $7 from $233 in 2022.  

It’s exciting to see these costs decrease after what Medicare recipients experienced in 2022. The standard Medicare Part B premium jumped $21.60 from 2021 to 2022 due to Medicare’s projected spending on Aduhelm, a drug that battles Alzheimer’s. But spending was lower than expected on that drug and other Part B items and services, resulting in larger financial reserves for Part B and ultimately reduced costs to you – the Medicare beneficiary.

There is one cost that is going up. It’s Medicare Part A that deals with hospital coverage. The deductible per benefit period (which generally starts when you are admitted to the hospital) will be $1,600 in 2023, up $44 from this year’s $1,556. That applies to the first 60 days of inpatient care. For the 61st through 90th day, the coinsurance will be $400 per day, up from $389 this year. Many choose to use Medicare supplements to cover hospital costs and do not pay the Medicare Part A premium.

Lastly, IRMAAs (income-related monthly adjustment amounts) are changing for 2023. These amounts impact your Part B and Part D premiums. If you are single, IRMAAs will begin at a modified gross income adjustment of more than $97,000, up from $91,000 this year. For married beneficiaries filing a joint tax return, the extra monthly charge will apply if income is above $194,000, up from $182,000 this year.

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