Monthly Medicare Part B premiums for 2023 are coming down by $5.20 per month, which is a big relief to many seniors who were shocked when premiums jumped significantly from 2021 to 2022.
In addition to Part B premiums, the average premium for Medicare Advantage plans is also falling. That’s good news going into 2023.
The monthly rate for Part B premiums will be $164.90 for most Medicare recipients, compared to the current rate of $170.10.
The Centers for Medicare and Medicaid Services sets the premium amounts as well as coinsurance and deductibles for Medicare Parts A and B annually. But while the premiums for Part B usually rise, there are extenuating circumstances this year that resulted in the decision to reduce rates.
The monthly premium for Part B in 2021 was $148.50 and skyrocketed to $170.10 in 2022 based on the CMS estimate of the cost of the drug Aduhelm, used to treat Alzheimer’s disease. However, the Medicare program spent much less than expected on the primary drug for Alzheimer’s treatment, and recipients in 2023 will get some relief as a result.
Additionally, the Medicare Part B deductible for 2023 will be $226, compared to $219 in 2022.
The standard premium for Part B will be $164.90 for individuals making up to $97,000 a year, or $194,000 for couples who file joint taxes. Rates go up through a number of pricing tiers, which you can find here.
The maximum premium for Medicare Part B in 2023 will be $560.50 for those with earnings equal to or greater than $500,000.
Part D
The average basic monthly premium for standard Part D coverage is projected to be $31.50, compared to $32.08 in 2022. The Medicare Part D program helps people with Medicare pay for both brand-name and generic prescription drugs.
Medicare Advantage
The projected average premium for 2023 Medicare Advantage plans is $18 per month, compared with the 2022 average of $19.52.
Medicare Advantage plans will continue to offer a wide range of supplemental benefits in 2023, including eyewear, hearing aids, preventative and comprehensive dental benefits, access to meals (for a limited duration), over-the-counter items, and fitness benefits.
In addition, more than 1,200 Medicare Advantage plans will participate in the CMS Innovation Center’s Medicare Advantage Value-Based Insurance Design Model in 2023, which tests the effect of customized benefits that are designed to better manage diseases and meet a wide range of health-related social needs, from food insecurity to social isolation.
The benefits under this model are projected to be offered to 6 million people.
The takeaway
Going into 2023, Medicare beneficiaries will enjoy an overall reduction in the premium they pay, a rare development. Since we are mired in some of the worst inflation the country has seen in more than 40 years, the reductions are welcome news.
