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.