In 2023, some significant changes will be made to Medicare. These changes may affect how much you pay for your coverage, what benefits are available to you, and more. It’s important to stay informed so that you can make the most of your Medicare coverage.
In this article, we’ll discuss some of the upcoming changes and how they may impact you. We hope this information helps you plan ahead for 2023!
What Changes to Expect in 2023
Changes to Medicare’s costs and premiums will be updated due to the implementation of the Inflation Reduction Act (IRA). However, some additional modifications are in store for beneficiaries – allowing them access to improved healthcare coverage at more affordable prices. With certain aspects taking effect over several years, some benefits will begin immediately.
The Inflation Reduction Act And How It’s Going to Improve Health Care Costs
The future of prescription drug costs looks brighter with changes resulting from the Inflation Reduction Act in 2023. Beneficiaries will be relieved as Insulin prices cap at $35 and beneficiaries can only spend a maximum of $2,000 annually on drugs.
Thanks to health policy updates that remove the non-interference provision, there is now hope for lower medication costs due to negotiations from HHS starting with the top 10 most expensive covered meds!
2023 Costs For “Original Medicare”
Medicare Part A
Premium – Most of you won’t have to pay anything for Medicare Part A coverage. But if you haven’t paid into it long enough – perhaps between 0 and 39 quarters – your premiums may increase slightly. Those with 30-39 quarters will experience a jump from $499/month to just over $500; while those who’ve contributed fewer than 29 quarters typically see an uptick of around $4 bucks per month (from roughly $274 all the way up to what works out as almost three hundred).
Deductible – The deductible will increase slightly from $1556 to $1600 so you’ll need to add $44 to your monthly budget to cover the difference.
Copayments – You’ll be spending slightly more here as well. Days 61-90 will rise $11 per day from $1556 to $400. Days 91 and beyond will also increase by $22 per day, going from $778 to $800 per day.
Medicare Part B
Here’s some good news regarding Medicare Part B – its cost actually dropped after a significant increase last year! This decrease is partially attributed to an Alzheimer’s drug covered by Medicare Part B that ended up costing much less than expected.
Premium – You’ll pay a few dollars less in premiums as they are dropping slightly from $170.10 to $164, just enough to cover a coffee or two.
Deductible – Your deductible will be reduced from $233 to $226.
Coinsurance – No change here. Part B coinsurance stays the same.
Medicare Part C
Medicare Advantage plans offer an alternative way for beneficiaries to access their Medicare benefits. These customized plans provide specific coverage options with different out-of-pocket costs based on the insurance company’s choices, giving you more control and flexibility over your healthcare expenses.
The cost of a Medicare Advantage plan will drop by about $1 per month from $19 to $18.
Medicare Part D
Medicare Part D is designed to help make it easier and more affordable to get the prescription drugs you need – with some estimates suggesting that next year the plan may provide more benefits in terms of expenses.
Average Monthly Premium – The average monthly premium has gone down from $33.37 per month to $31.50 per month
Deductible – The maximum deductible has gone up slightly from $480.00 to $505.00
Initial Coverage Limit – This goes up by $110.00 from $4,020.00 to $4,130.00
Coverage Gap Limit – This increases by $350.00 from $7,050.00 to $7,400.00
Catastrophic Phase Copay – A slight increase here from $3.70 to $4.15 for generic drugs and $9.20 to $10.35 for brand-name drugs
Medicare Income Adjusted Amount
Higher-income Medicare beneficiaries may be required to pay a surcharge above and beyond the Parts B, C, and D premiums. Your modified adjusted gross income is based on your taxes from two years prior – if it’s over $97K as an individual or $194K filing jointly you will need to factor in the additional IRMAA premium when budgeting for healthcare expenses.
Medicare beneficiaries have something to celebrate with the coming changes for 2023. Part A premiums won’t impact most who are enrolled in a Medicare Supplement or Advantage plan but many stand to benefit from the reduction of Part B premiums and deductibles, along with capped insulin costs that will drastically reduce out-of-pocket expenses for some. With these new changes, all can look forward to improved access and coverage under Medicare.