Standard premiums for Medicare Part B are expected to drop to $164.90 per month in 2023, the Centers for Medicare & Medicaid Services announced on September 27.
This upcoming drop partly offsets last year’s steep 14.5 percent rise, a $21.60 monthly increase, after a new Alzheimer’s drug, Aduhelm, was introduced to the market with a $56,000 price tag.
Medicare has since set strict limitations on the drug’s use, and as a result the drugmaker has cut the cost of the medication in half.
This meant that Medicare wasn’t spending as much cash on the drug as it had budgeted for, helping to shore up reserves and allow the agency to set the Part B premiums lower for 2023 and ultimately reduce the cost of health care.
Around 64.5 million people are enrolled in Medicare Part A and/or B. Those covered by Part B, which applies to routine doctors’ visits and other outpatient care, will now receive a standard $62.40 discount in 2023.
The rare 3 percent decrease, worth $5.20 a month, is likely to be coupled with an increase in Social Security benefits which could put hundreds of dollars directly into the pockets of millions of people.
The Senior Citizens League previously predicted that the Cost of Living Adjustment for 2023 could be as high as 10.1 percent, but based on the most recent Consumer Price Index data, they now expect it will be around 8.7 percent.
“That’s something we may never see again in the rest of our lives,” Mary Johnson, the Social Security and Medicare policy analyst for The Senior Citizens League, told the Associated Press.
“That can really be used to pay off credit cards, to restock pantries that have gotten low because people can’t afford to buy as much today as they did a year ago and do some long-postponed repairs to homes and cars.”
Spending on other Medicare services and items was lower than expected, too. The annual deductible for the Part B program will also fall by $7 to $226.
And, if you’re a higher-income Medicare beneficiary, you might find yourself paying less in additional premium charges in 2023.
Income-related adjustment amounts (IRMAAs) kick in next year for households earning less than $97,000 for single tax filers and $194,000 for joint filers, up from $91,000 and $182,000, respectively.
These surcharges apply to Part B and Part D (prescription drug coverage) premiums and affect around 7 percent of Medicare beneficiaries.
Medicare Open Enrollment for 2023 will begin on October 15, 2022 and ends on December 7, 2022.
If you have an income between $97,000 and $123,000 you will be expected to pay an additional $65.90 adjustment amount on your Medicare plan, raising your monthly payment to $230.80.
If your income falls between $123,000 and $153,000, your adjustment figure is $164.80, totalling $329.70 a month.
Those with an income of between $153,000 and $183,000 a year will need to pay an additional $263.70 a month, raising their premium to $428.60.
Earners between $183,000 and $500,000 a year will be expected to pay an additional $362.60 a month, with premiums rising to a total of $527.50. And for earners over $500,000, your premiums will total $560.50, with $395.60 of the monthly sum making up the income adjustment.
Joint Tax Filers
If you are a joint tax filer with an income of less than $194,000 per year between you both, you will be paying $164.90 per month for your Medicare premium, with no additional adjustment amount.
If your joint income falls between $194,000 and $246,000, you will pay the additional $65.90 adjustment raising your monthly payment to $230.80.
If you both earn between $246,000 and $306,000 your adjustment figure is $164.80, totalling $329.70 a month for your Medicare premium.
Joint earners between $306,000 and $366,000 will need to pay an additional $263.70 a month, raising Part B premiums to $428.60.
Those with an income of between $366,000 and $750,000 collectively a year pay an additional $362.60 a month, with premiums rising to a total of $527.50.
For joint earners with incomes over $750,000, your monthly adjustment is $395.60, $560.50 for your Medicare Part B premium.
