I have recently enrolled in Medicare and received my 2023 Medicare and You handbook, but I cannot find what the 2023 Medicare costs will be. Do you have any idea what the new Medicare costs are? Thank you.
-Sarah from San Antonio
Every year the Medicare and You handbook is printed and mailed out before Oct. 1 to all Medicare beneficiaries to help guide them with the Medicare Annual Enrollment period which ends Dec. 7.
The handbook states that, at the time of printing, the premiums and deductible amounts for Medicare Part A, Part B and Part D were not available.
Guess what? The Centers for Medicare & Medicaid Services (CMS) released the 2023 Medicare Part A and B premiums and costs on Sept. 27, with a Medicare Part B premium and deductible decrease. All other parts of Medicare, such as Medicare Part A (in-patient hospital care) and Medicare Part D (prescription drugs), increased.
Here is a rundown of the 2023 Medicare Part A, B and D premiums and costs:
- Part A Costs (Inpatient Hospital): The new Part A inpatient hospital deductible will be an increase of $44 from $1,556 in 2022 to $1,600 for 2023. The Part A deductible starts over every 60 days; it is not a once-a-year deductible but 6-times a year. Part A includes Medicare Skilled Nursing and the 2023 costs will be a $0 per day co-pay for days 1-20. Days 21- 100 will be a $200 per day co-pay.
- Part B Costs (Medical): The new Part B medical/doctor deductible will decrease from a $233 annual deductible to $226 beginning January 1. Medicare will still pay 80% of the Medicare-approved amount and you (the Medicare beneficiary) pay the remaining 20% of the Medicare-approved amount.
- Part B Premiums: The new monthly premium decreases by $5.20, from $170.10 in 2022 to $164.90 per month beginning January 1. The income-related monthly adjustment amount (IRMAA) has increased to $97,000 for individuals and $194,000 for couples. The monthly premium for that tier will be $230.80 (compared to $238.10 for 2022). For those in the highest IRMAA tier, the premium will be $560.50 per month (compared to $578.30 in 2022).
- Initial Part D Deductible: The initial Part D deductible will increase by $25 (from $480 in 2022 to $505 in 2023).
- Initial Part D Coverage Limit: The initial Part D coverage limit will increase by $230 (from $4,430 in 2022 to $4,660 in 2023), where the 2023 “Donut Hole” begins.
- The 2023 Donut Hole begins once you reach your Medicare Part D plan’s initial coverage limit at $4,660 and ends when you spend an out-of-pocket total of $7,400, when Catastrophic coverage begins.
- The “Donut Hole Discount”: Part D enrollees will receive a 75% “Donut Hole Discount” on the total cost of their brand-name drugs purchased while in the Donut Hole. The discount includes a 70% discount paid by the brand-name drug manufacturer and a 5% discount paid by your Medicare Part D plan. The drug manufacturer’s 70%, plus the 5% Part D plan discount, plus the 25% you pay are combined to count toward your Donut Hole exit point.
If you’re still confused about Medicare, you can visit ToniSays.com for information about upcoming Zoom webinars, including one on Wednesday, November 16 at 4 p.m. CST.
Toni King is an author and columnist on Medicare and health insurance issues. She spent more than 27 years as a top sales leader in the field. For a Medicare checkup, email: email@example.com or call 832-519-8664. You can now visit www.seniorresource.com/medicare-moments to listen to her Medicare Moments podcasts.