As you probably know, Medicare coverage rarely remains the same from one year to the next. Changes do happen, and the Centers for Medicare and Medicaid Services has just released the new premium and deductible amounts for next year.
Medicare Part A, or hospitalization insurance, is free to anyone with a history of 40 quarters of Medicare-covered employment. However, the deductible for hospital stays has changed from $1,556 to $1,600 starting in January. This deductible covers hospital stays of up to 60 days. After 60 days, a daily coinsurance rate of $400 will apply (up from $389 in 2022).
Medicare Part B premiums are reevaluated each year, according to the Social Security Act. For 2023, the new standard Part B premium will be $164.90, a decrease of about 5 dollars from 2022. In addition, the standard annual deductible will decrease slightly to $226.
However, about 7 percent of people on Medicare Part B will pay different premiums according to their income. If you fall into an income bracket above $97,000 annually for single taxpayers or $194,000 for married taxpayers, contact your Licensed Agent to learn about your new Part B premiums.
Medicare Part D (prescription drug plans) premiums will also change for the 2023 coverage year. These monthly premiums will decrease by about 1.8 percent to $31.50 for standard Part D coverage. However, those in the higher tax brackets will pay an additional premium according to their incomes.
And remember: Medicare Part C (or Medicare Advantage) plans roll both Part A and Part B into one convenient plan that operates through a network. Medicare Advantage plans often include Part D coverage and may even include additional benefits. To learn more about Medicare Advantage, call one of our brokers to discuss the plans available in your area.