Medicare Updates for 2023

How much does Medicare cost in 2023? 

The monthly premiums and deductibles for Medicare Part A and Part B tend to change every year. Although Part A is free for most people, some beneficiaries will not qualify for premium-free Part A and need to know what costs to expect.

In 2023, beneficiaries will see their Part B premiums and deductible decrease. It isn’t much but it is certainly better than an increase. Here’s a look at the numbers: 

Part A premium in 2023

If you have worked at least 40 quarters (10 years) in the U.S. and paid Medicare taxes, you qualify for a $0 premium for Part A. 

In 2023, if you have at least 30 work quarters your premium is $278/month. If you have less than 30 quarters, you will pay the full Part A premium, which is $506/month. 

Part A deductible 

The Part A deductible is per 60-day benefit period. A benefit period starts the day you are admitted as an inpatient and ends 60 days after you are discharged, meaning you could pay the Part A deductible multiple times during the year. In 2023, the deductible is $1,600. 

Part B premium 

While many qualify for premium-free Part A, everyone pays the Part B premium to have coverage for their outpatient services. The Part B premium is based on your income, so you could have a higher monthly premium if you have a higher income. However, most people pay the standard amount, which in 2023 is $164.90/month, a $5 decrease from 2022.

Medicare Part B deductible in 2023

Before Medicare Part B pays for any of your outpatient services, you must satisfy the Part B deductible first. This annual deductible decreased from $233 to $226 in 2023. 

Part D 

Medicare Part D is your prescription coverage. Part D has a maximum deductible amount that insurance carriers cannot go over when piecing together their plans. Insurance carriers can have a lower deductible but cannot go higher. In 2023, a Part D plan’s maximum deductible can be $505. 

2023 Medicare Enrollment Changes 

With the passing of the Consolidated Appropriations Act of 2021, there are a couple of changes in 2023 that you’ll want to know about. The new rules begin on January 1, 2023. 

Initial Enrollment Period 

Seniors qualify for an Initial Enrollment Period (IEP) to apply for Medicare around their 65th birthday month. This window begins three months before your 65th birthday month and ends three months after. 

Before this rule change, whenever you applied during the last three months of your IEP, your Medicare benefits were delayed by a couple of months. Fortunately, there is no more delay starting in 2023. So, if you apply during the three months after your 65th birthday month, your Medicare coverage will begin the 1st of the month after you apply. 

General Enrollment Period 

This new law is good news for those who need to enroll during the General Enrollment Period. 

Let’s say you miss your Initial Enrollment Period and do not qualify for a Special Enrollment Period. In that case, you must wait until the next General Enrollment Period (GEP) to apply for Medicare Parts A and B. This period begins on January 1 and ends on March 31. 

Before, when you enrolled during the GEP, your Medicare Part B benefits wouldn’t start until July 1 of that year. Now, as of January 1, 2023, your Medicare coverage will begin the 1st of the month after you apply. Thankfully, those who enroll during the GEP will no longer need to wait up to six months for their benefits to take effect. 

2023 Medicare coverage changes 

The Inflation Reduction Act of 2022 will bring many changes to the Medicare health system. Some modifications won’t come for several more years, but a few occur in 2023. These are some of the changes you can expect to hear about starting this year: 

Cap on Insulin 

Those who have their insulin covered under Medicare Part D or their Medicare Advantage plan will see a $35 cap on insulin starting January 1. If your insulin is covered by Part B, this cap will occur beginning July 1. 

All Part D vaccinations covered 100% 

One thing Medicare beneficiaries can be happy about is that beginning January 1, the Shingles vaccine and any other Part D vaccinations recommended by the Advisory Committee on Immunization Practices are covered 100%, no matter if you have met your Part D deductible for the year. 

2023 Medicare Advantage plans 

While Medicare Advantage plans come from private insurance carriers, each plan has a maximum out-of-pocket limit it cannot exceed. In 2023, the maximum out-of-pocket limit for in-network services is $8,300. 

More plan options? 

Nearly 30 million beneficiaries were enrolled in a Medicare Advantage plan as of 2022, according to the Kaiser Family Foundation (KFF). In 2023, KFF estimates that the average Medicare beneficiary can choose from 43 Medicare Advantage plans. This is twice the average number of plans available compared to five years ago.

Stay up to date 

So, there you have it. The Medicare changes and improvements in 2023 and beyond. With thousands of people becoming eligible for Medicare every day, our team wants you to stay familiar with how the Medicare system works and stay up to date with future changes.