What You Need to Know About Medicare Changes in 2023
It’s that time of year again when the Centers for Medicaid and Medicare Services (CMS) start announcing changes to Medicare for the next year.
Medicare open enrollment begins on October 15, 2022 and ends on December 7, 2022. During this time, people eligible for Medicare can compare 2023 coverage options between original Medicare, Medicare Advantage, and part D prescription Drug Plans. In addition to the soon-to-be-released premiums and cost-sharing information for 2023 Medicare Advantage and Part D plans, the Fee-for-Service Medicare premiums and cost-sharing information releases will enable people with Medicare to understand their Medicare coverage options for the year ahead. Medicare health and drug plan costs and covered benefits can change from year to year so people with Medicare should look at their coverage choices annually and decide on the options that best meet their needs
Medicare Savings Program (MSP)
To help with Medicare costs, low-income seniors and adults with disabilities may qualify to receive financial assistance from the Medicare Savings Programs (MSPs). The MSPs help millions of Americans access high-quality healthcare at a reduced cost, yet only about half of eligible people are enrolled. The MSPs help pay Medicare premiums and may also pay Medicare deductibles, coinsurance, and copayments for those who meet the conditions of eligibility. Enrolling in an MSP offers relief from the Medicare costs, allowing people to spend that money on other vital needs, including food, housing, or transportation. People with Medicare interested in learning more can visit, here.
Although some of this information is available, other information such as individual insurer plans have not all been announced. I will be sharing with you known changes up to this date. (Find Diahanna’s latest posts, here.)
- The standard Medicare monthly premium for Medicare Part B will decrease by $5.20 making the new Part B premium $164.90. Down from $170.10.
- The Part B deductible will also be less. It will be $226 a decrease of $7.00 from the 2022 amount of $233.00.
The reasoning for the change in cost is related to Medicare’s anticipated projected spending on the drug Aduhelm, a drug that battles Alzheimer’s disease. The lower than expected spending on both Aduhelm and other Part B items resulted in larger financial reserves for Part B, allowing the program to reduce the 2023 cost to beneficiaries.
Medicare Part A (hospital coverage) deductible per benefit period which generally starts when you are admitted to the hospital, will be $1600 for 2023. This is a $44 increase over 2022 costs which was %1556. This applies to the first 60 days of inpatient care.
As you know the costs to you change the longer you are inpatient. These inpatient periods increased as well;
- For the 61st through the 90th day of inpatient care, the coinsurance will be $400 per day, which is up $12 from the 2022 amount of $389.
- Lifetime reserve days will increase for the 2022 amount of $788 per day to $800 per day.
Additional changes will include income-related adjustment amounts. Referred to as IRMAA’s. This will kick in for single Medicare beneficiaries at a modified adjusted gross income of more than $97,000. This is up from the 2022 adjusted gross income (AGI) of $91,000. For married couples who file a joint tax return, the extra monthly charge will apply if income is above $194,000, up from the 2022 amount of $182,000. These changes should give many beneficiaries a bit of breathing room and reduce overall Medicare premium costs.
Other income bands have changed, and I would encourage everyone to review these changes. You can access this information via the Center for Medicare Services website.
Even if you feel you have the best medicare plan for you, I would encourage you to review your plans to see if anything has changed. Particularly if you have an illness that is constantly evolving. Plans do the same thing. And please don’t forget to review your prescription drug plan. Medicines move along the tiers all the time. You know the saying, “If You Fail to Plan, Then You Plan to Fail. Don’t be caught with subpar coverage. Take the necessary steps to protect your health.
Diahanna Vallentine, BCPA, Financial Empowerment Lead
In 2002 Diahanna and her husband received the news that her husband had MGUS, a precursor to Multiple Myeloma. Upon her husband death in 2013, Diahanna immediately decided to make it her mission to help patients and caregivers empower themselves to speak up and to position themselves as partners in their treatment. Diahanna became a Board-Certified Patient Advocate. She is currently the Financial Myeloma Coach for The Myeloma Crowd Foundation.