There is some relief coming to Medicare beneficiaries in 2023. After a record Medicare Part B increase in 2022, Medicare Part B will decline in 2023. The Medicare Part B deductible will also decline.
Wondering about Part A and Part B Medicare coverage? Read “What is Medicare Part A and What Does it Cover?” or “What is Medicare Part B and What Does it Cover?”
If you were on Medicare in 2021, you likely felt the impact of the $21.60 per month Medicare Part B standard premium increase in 2022. That increased annual premiums to nearly $260 per person or $520 for couples. It was a steep rise, especially as households were impacted by rising inflation.
The good news is that the Medicare standard monthly Part B premium will drop 3% in 2023, to $164.90 per month, instead of $170.10 (2022). This is a savings of $5.20 per month ($62.40 annually per person). This could be an annual savings of $124.80 for a couple.
The last time there was a decrease in the Medicare Part B premium was in 2012.
|Year||Medicare Part B Premium|
Your Medicare Part B premium could be higher depending on your income. Suppose your Modified Adjusted Gross Income (MAGI), as reported on your IRS tax return from two years ago, is higher than a certain amount. In that case, you’ll pay the standard premium and an Income Related Monthly Adjustment Amount (IRMAA).
IRMAA is extra charge beneficiaries pay in addition to the standard premium.
Review the table below to see how much your monthly Part B premium will be – depending on your income from two years ago.
|If your yearly income in 2021 (for what you pay in 2023) was||You pay each month (in 2023)|
|File individual tax return||File joint tax return||File married & separate tax return|
|$97,000 or less||$194,000 or less||$97,000 or less||$164.90|
|above $97,000 up to $123,000||above $194,000 up to $246,000||Not applicable||$230.80|
|above $123,000 up to $153,000||above $246,000 up to $306,000||Not applicable||$329.70|
|above $153,000 up to $183,000||above $306,000 up to $366,000||Not applicable||$428.60|
|above $183,000 and less than $500,000||above $366,000 and less than $750,000||above $97,000 and less than $403,000||$527.50|
|$500,000 or above||$750,000 or above||$403,000 or above||$560.50|
Source: Part B Costs, Medicare.gov
The Part B premium will be automatically deducted from your benefit payment if you receive a Social Security, Railroad Retirement Board, or Office of Personnel Management benefit. If you don’t receive these benefits, you’ll receive a monthly or quarterly premium invoice.
“There are several ways to reduce your Medicare Part B premium. You can appeal your IRMAA adjustment, explore Medicare Advantage plans, or if you’re low-income there are programs that can help.“
There are some situations where you can appeal an IRMAA adjustment. These include having the IRMAA based on a tax amount that is inaccurate or out-of-date or one of seven life-changing events.
These seven life-changing events include:
When any of these occur, you can request an appeal in writing by completing a request for reconsideration form with the Social Security Administration.
You can also call the Social Security Administration at 1-800-772-1213.
Paying a monthly premium and looking for ways to reduce it? If you are lower-income and meet specific criteria, you may qualify for a Medicare Savings Program. Three programs (Qualified Medicare Beneficiary Program, Specified Low-Income Beneficiary Program, and Qualifying Individual Program) could help you pay for all or most of your Medicare Part B premium.
Also, some Medicare Advantage plans can reduce the cost of the Part B premium through a give-back benefit.
To see if you qualify for a Medicare Savings Program or a give-back benefit, speak to a local licensed Connie Health agent who can help you navigate your Medicare journey. Call (623) 223-8884 (TTY: 711).
The Medicare Part B deductible will decrease from $233 in 2022 to $226 in 2023. That’s a decrease of $7.00 annually. While it’s not a significant decrease, it’s better than the traditional increase since 2013. 2012 was the last time there was a decrease in the Medicare Part B deductible.
|Year||Medicare Part B Deductible|
After your deductible is met ($226 in 2023), you pay 20% coinsurance for Medicare-approved doctor services, outpatient therapies, and Durable Medical Equipment (DME).
Original Medicare does not have a maximum on these out-of-pocket expenses. This is why most Medicare enrollees have either Medicare Supplemental insurance plus their Medicare prescription drug coverage (Medicare Part D plan). Or they choose to enroll in a Medicare Advantage Prescription Drug Plan, which covers all of these needs.
Review the table below to learn what coinsurance and copayments are typical to pay under Medicare Part B.
|General costs for services (coinsurance)||20% of Medicare-approved service or item after your deductible is paid. The doctor or health care provider must accept the Medicare-approved amount as full payment, also called “accepting assignment.”||Check with your local licensed agent.|
|Clinical laboratory services||$0 for covered clinical laboratory services. Check with your local licensed agent.||$0 for covered clinical laboratory services. Check with your local licensed agent.|
|Home health care||20% of the Medicare-approved amount for Durable Medicare Equipment (DME). This includes wheelchairs, walkers, hospital beds, and other equipment.||$0 for covered home health care services. Check with your local licensed agent.|
|Inpatient hospital care||20% of the Medicare-approved amount for services while you’re inpatient at a hospital.||Check with your local licensed agent.|
|Outpatient mental health care||20% of the Medicare-approved amount to your doctor or health care provider for diagnosing or treating your condition.||$0 for your yearly depression screening. Check with your local licensed agent.|
|Partial hospitalization mental health care||20% of the Medicare-approved amount after you meet the Medicare Part B deductible. This includes services from your doctor and other qualified mental health professionals. Coinsurance applies for each day of partial hospitalization services received in a hospital outpatient setting or a community mental health center.||Check with your local licensed agent.|
|Outpatient hospital care||20% of the Medicare-approved amount for services provided by a doctor or other health care providers.||Copayment is due to the hospital for each service you get in a Medicare-covered hospital outpatient setting, except for some preventative services. Your copayment, in most cases, won’t be more than the Medicare Part A hospital stay deductible amount.|
Wondering how a Medicare Advantage or Medicare Supplement plan could help reduce your out-of-pocket costs? Speak with a local licensed agent. Call (623) 223-8884 (TTY: 711) to explore your plan options.
Read more by David Luna
I am a Spanish-speaking Arizona Life and Health Insurance Licensed Agent and have been helping people with Medicare since 2005. I am a Marine Corps Veteran & former police officer. I enjoy watching football and basketball but hold family time in the highest regard.