Medicare, the federal health-insurance program for seniors 65 and older and their caregivers, is going to see some changes in the coming year thanks to mandated annual adjustments via the Centers for Medicare & Medicaid Services (CMS) based on the record 2023 Cost of Living Adjustment (COLA).
The following is a listing of the Medicare premium, deductible, and coinsurance rates that will be in effect in 2023
Part A: (Hospital Insurance) Motel Premium
The monthly premium for Part A is usually waived for individuals who have paid Medicare taxes through employment or they have a spouse with 40 or more quarters of Medicare-covered employment (they paid taxes!)
If this is not the case, a monthly fee of $506 may be charged which is prorated for those with 30 to 39 quarters of eligible employment.
Further, failure to enroll in Part A during initial Medicare eligibility (usually at age 65) may result in a penalty.
Other updates for 2023 Part A include:
In 2023, you pay:
■ $1,600 deductible per benefit period
■ $0 for the first 60 days of each benefit period
■ $400 per day for days 61–90 of each benefit period
■ $800 per “lifetime reserve day” after day 90 of each benefit period (up to a maximum of 60 days over your lifetime)
Skilled Nursing Facility stay
In 2023, you pay:
■ $0 for the first 20 days of each benefit period
■ $200 per day for days 21–100 of each benefit period
■ All costs for each day after day 100 of the benefit period
Part B: (Medical Insurance) Monthly Premium
Medicare Part B covers outpatient hospital services, physician services, home health services, durable medical equipment, and certain other services not covered by Medicare Part A.
Most people pay the standard monthly premium amount ($164.90 in 2023). This is a a decrease of $5.20 from $170.10 in 2022. The SSA will tell you the exact amount you’ll pay for Part B in 2023.
The annual deductible for all Medicare Part B beneficiaries is $226 in 2023, a decrease of $7 from the annual deductible of $233 in 2022.
You pay the standard premium amount if you:
■ Enroll in Part B for the first time in 2023.
■ Don’t get Social Security benefits.
■ Are directly billed for your Part B premiums.
■ Have Medicare and Medicaid, and Medicaid pays your premiums.
Medicare Part B Income-Related Monthly Adjustment Amounts
A beneficiary’s Part B monthly premium is based on his or her income. These income-related monthly adjustment amounts affect roughly 7% of people with Medicare Part B. The 2023 Part B total premiums for high-income beneficiaries with full Part B coverage are shown in the following table:
Medicare Deductible and Coinsurance Amounts
Part A: (pays for inpatient hospital, skilled nursing facility, and some home health care). For each benefit period Medicare pays all covered costs except the Medicare Part A deductible during the first 60 days and coinsurance amounts for hospital stays that last beyond 60 days and no more than 150 days.
The Medicare Part A inpatient hospital deductible that beneficiaries pay if admitted to the hospital will be $1,600 in 2023, an increase of $44 from $1,556 in 2022.
Medicare Advantage Plan (Part D)
Medicare advantage is a type of Medicare-approved health plan from a private company that you can choose to cover most of your Part A and Part B benefits instead of Original Medicare. It usually also includes drug coverage
Higher income beneficiaries’ Part D monthly premiums are based on income. These income-related monthly adjustment amounts affect roughly 8% of people with Medicare Part D. The Part D income-related monthly adjustment amounts are deducted from Social Security benefit checks or paid directly to Medicar