The projected cost of Medicare in 2023 surprises some younger seniors but not those who have been paying premiums since 2011.
Will Medicare Part B
premiums decrease in 2023? Will the Medicare Part B deductible increase in 2023? Yes.
Although a drop in Medicare spending is unusual, it has happened in the past. Medicare began in 1966 with a $50 deductible and a $3 monthly Part B cost. The annual deductible and premiums for Medicare Part B have historically increased or decreased. However, 2012 saw a change in that.
The physician fee formula served as the primary justification for the 2012 cutbacks. Due to the Medicare and Medicaid Extenders Act (2010), the method used to figure out how much Medicare doctors would get paid in 2012 was expected to go down by 29.5%.
Due to the physician fees in that year, both the premium and the deductible reversed course and decreased to the advantage of the beneficiaries. In 2011, the Part B premium was $99.90 per month, which was $15.50 less per month than in 2010. In addition, the yearly deductible decreased to $140 from $162.
Medicare’s monthly Part B premium will drop from $170.10 in 2022 to $164.90 in 2023. In addition, the annual deductible will decrease from $233 in 2022 to $226 in 2019.
Aduhelm, a recently released Alzheimer’s medicine, is the main driver behind the 2023 Medicare adjustments that have been disclosed.
Aduhelm is a costly medication. In preparation for the 2022 Medicare Part B premiums, it was estimated that each patient would spend upwards of $56,000 annually. As a result, Part B premiums increased by $33 over the prior year.
The Part B premium will also increase to $26.30 per month in 2022. Medicare Part B participants also had a $30 rise in their yearly deductible that year, bringing it to $233.
Medicare decided in April of this year to consider just covering Aduhelm for government-approved clinical trials. The yearly deductible and the monthly premiums were both decreased by this policy change. As a result, Medicare beneficiaries will receive cost savings in 2023.
The Centers for Medicare and Medicaid Services published a fact sheet each year outlining fundamental changes to Medicare and Medicaid for the upcoming year.
You might find the following information in this document interesting:
• Starting in 2023, certain Medicare enrollees who are 36 months post kidney transplant and are no longer eligible for full Medicare coverage may elect to continue Part B coverage of immunosuppressive medications by paying a premium.
• The Income-Related Monthly Adjustment Amounts (IRMAA) affect approximately 7% of people with Medicare Part B. In addition, the immunosuppressive medication premium is $97.10 for 2023.
• Those who have had coverage for at least 30 quarters or are married to someone who has had coverage for at least 30 quarters may purchase Part A at a discounted monthly premium cost, which will be $278 in 2023, an increase of $4 from 2022.
Significant changes to Medicare Plans
• Lower Part B deductible
Additionally, the Part B deductible drops by $7 to $226 per year in 2023. As part of the Part B durable medical equipment benefit, members of Medicare who use an insulin pump will no longer be required to pay a deductible as of July 1. The proposed Inflation Reduction Act of 2022 will limit cost sharing for insulin to $35 per month starting in 2023.
• Part A Increase.
There are deductibles for each hospital stay, even though most Medicare members do not pay the Part A monthly premium, which covers skilled nursing facilities, inpatient hospitals, hospices, and some home healthcare services. The Part A deductible for stays in 2023 will be $1,600, a $44 increase from this year.
The monthly premium will also go up for individuals who have not worked long enough to be eligible for Part A without a premium. In 2023, a $7 rise will result in the complete Part A premium being $506 per month. Depending on the beneficiary’s job history or spouse, they may be required to pay the entire Part A payment. Hospital costs should be confirmed with the beneficiary’s Medicare Advantage plan.
Some people in online discussion forums are already complaining that the financial savings for Medicare beneficiaries in 2023 would be negligible. But don’t be negative. Be upbeat. You can use the additional savings to cover the membership fees for the National Active and Retired Federal Employees Association (NARFE) or the American Association of Retired Persons (AARP). Don’t forget to contribute to the American Red Cross as well. Others will greatly appreciate it.
Contact Information:
Email: [email protected]
Phone: 6023128944
Bio:
Mike was born in Chicago, Illinois on August 13, 1946. He was brought up in the
suburb of Skokie on Chicago’s northwest side and graduated from Niles Township (
East ) high school In 1964. Two years later he joined the US Air Force in November of
1966. After 2 years of Intense training he volunteered for Viet Nam and was sent to
Bien Hoa Airbase, which was 25 miles from Saigon, the nation’s capital. He
volunteered for a number of especially dangerous missions on his days off, such as
flying as a door gunner on a US Army helicopter and as a technical assistant on a
psychological operation on an Air Force O-1E observation aircraft. Capping off his
impressive accomplishments was winning the coveted Base Airman of the Month for
March 1969, a feat which was featured in the Pacific Stars And Stripes newspaper
read by every service man stationed in the Pacific theater of operations. After his
Viet Nam tour of duty he was stationed at Luke Air Force Base in Glendale, Arizona
where he met and married his wife, Lequita.
He graduated from Arizona State University in May, 1973, and after a 30-plus year
career as a financial advisor he joined a number of service organizations including
Easter Seals and Valley Forward, sponsor of EarthFest. He was also involved with the
National Federation of Independent Business and became the longest-serving
chairman of the Leadership Committee ever. He spoke before the ( AZ ) House Ways
and Means & Senate Finance committees. He then joined Disabled American
Veterans ( DAV ) in September of 2015. He rose quickly through the ranks and
became Chapter 8 Commander in May of 2019 where he served with Distinction for 3
years before being “ termed out”. The next year, as Vice Commander, he won the
title of National Champion Recruiter!
