2023 Changes to Medicare

The biggest change coming to Medicare in 2023 is a decrease in the Part B premium and deductible. These are small decreases, but they turn the tide on annual increases in the past. Following the Part B premium’s biggest jump in history in 2022, it’s dropping by $5.20 to $164.90 in 2023.

The Part B deductible also decreased by $7 to $226 for 2023.

But the Part A hospital deductible is on the rise, jumping from $44 to $1,600. The Part A premium, which very few beneficiaries have to pay, is $506 — up $7 from 2022.

To ensure all can have access to quick coverage, Medicare changed when coverage begins for those who join during their initial enrollment period (IEP) and the general enrollment period (GEP). Additional qualifications for the Special Enrollment Period (SEP) have also been added for 2023.

The Medicare Part A deductible increased by $44 — up to $1,600 for each benefit period in 2023. A benefit period begins on your first day of hospitalization and lasts for 60 days after you leave. Once your benefit period ends, your deductible starts over.

Medicare Part A covers your inpatient care, including hospital stays or time in a skilled nursing facility. Keep in mind that Part A is premium-free for 99% of beneficiaries. You would only have to pay a premium if you don’t have at least 40 quarters of Medicare-covered employment.

Medicare Part A coinsurance generally comes into play with extended hospital or care facility stays. Your share of the costs increases the longer you are hospitalized.

The standard monthly premium for Medicare Part B enrollees will be $164.90 for 2023, a decrease of $5.20 from $170.10 in 2022. This is largely due to an adjustment for lowered costs for Aduhelm — an Alzheimer’s drug Medicare started covering in 2022.

According to the U.S. Centers for Medicare & Medicaid Services, the 2022 Part B premium increase is the largest in history. There are several factors that led to the historic jump. When the new figures were released, Medicare was still determining whether the new Alzheimer’s drug Aduhelm would be covered, which could have significantly increased annual expenses given the drug’s price and number of beneficiaries who would qualify for it.

The monthly premium you pay increases based on your annual income. The premium is $164.90 for individuals who make less than $97,000 and couples who make less than $194,000.

The Medicare Part B deductible decreased by $7 to $226 in 2023.

The average monthly premium for a Medicare Advantage plan in 2023 is $18, a slight drop from the 2022, and continuing to fall from the 2021 figure of $21.22. About 90% of plans include Part D prescription drug coverage.

Medicare Advantage plans — also called Medicare Part C — are sold by private insurance companies that contract with Medicare. These plans include everything covered under Original Medicare plus expanded benefits like vision and dental.

According to a Kaiser Family Foundation report on Medicare Advantage updates, the average beneficiary had access to 39 different Medicare Advantage plans in 2022, which is more than in recent years. Medicare Advantage plans are available regionally, so beneficiaries who live in populated areas will have the most options to choose from. For example, there are 627 Medicare Advantage plans available in Florida in 2023. However, some states — like Montana with 26 Medicare Advantage plans available in 2023 — will have fewer options.

More than 1,200 Medicare Advantage plans will also participate in the CMS Innovation Center’s Medicare Advantage Value-Based Insurance Design (VBID) Model in 2023. This model tests the effect of benefits that manage a wide range of health-related needs. The benefits are projected to be offered to six million individuals.

The average premium for a plan in 2023 is $31.50 per month, up from $32.08 in 2022.

Medicare Part D prescription drug plan premiums vary by plan. For example, a Florida Part D monthly premium can range from $8.40 to $170.10. You’ll need to check with your plan to find out about these changes.

There are many options available for drug coverage in 2023. In 2023, all 50 U.S. states — besides New York — have 20 or more Part D plans to choose from. There is also a higher availability of insulin demonstration plans, with 2,881 Part D plans taking part in this model in 2023.

The Medigap deductible for high deductible Plans F, G and J is $2,700 in 2023, which is an increase from its 2022 figure of $2,490. There are several Medigap policies with different costs and coverage. Insurance companies do not all sell the same plans.

The out-of-pocket limits for Medigap Plans K and L increased in 2023, rising to $6,620 and $3,310, respectively. Inflation played a role in the increase.

Medigap — also known as Medicare Supplement insurance — helps you cover out-of-pocket costs that Original Medicare doesn’t cover.

It’s also important to remember that you can pair Medigap with Original Medicare, but not with a Medicare Advantage plan.

Medicare undergoes changes yearly. Most of these changes affect you in the amount of money you have to spend or the benefits you receive.

Every so often, Medicare changes have a major, historical impact on the federal government’s health care plan.