Published Oct. 12
Hello Toni:
I have recently enrolled in Medicare and received my 2023 Medicare and You handbook, but I cannot find what the 2023 Medicare costs will be. Do you have any idea what the new Medicare costs are? Thank you.
-Sarah from San Antonio
Toni King [ Courtesy of Toni King ]Hello Sarah:
Every year the Medicare and You handbook is printed and mailed out before Oct. 1 to all Medicare beneficiaries to help guide them with the Medicare Annual Enrollment period which ends Dec. 7.
The handbook states that, at the time of printing, the premiums and deductible amounts for Medicare Part A, Part B and Part D were not available.
Guess what? The Centers for Medicare & Medicaid Services (CMS) released the 2023 Medicare Part A and B premiums and costs on Sept. 27, with a Medicare Part B premium and deductible decrease. All other parts of Medicare, such as Medicare Part A (in-patient hospital care) and Medicare Part D (prescription drugs), increased.
Here is a rundown of the 2023 Medicare Part A, B and D premiums and costs:
- Part A Costs (Inpatient Hospital): The new Part A inpatient hospital deductible will be an increase of $44 from $1,556 in 2022 to $1,600 for 2023. The Part A deductible starts over every 60 days; it is not a once-a-year deductible but 6-times a year. Part A includes Medicare Skilled Nursing and the 2023 costs will be a $0 per day co-pay for days 1-20. Days 21- 100 will be a $200 per day co-pay.
- Part B Costs (Medical): The new Part B medical/doctor deductible will decrease from a $233 annual deductible to $226 beginning January 1. Medicare will still pay 80% of the Medicare-approved amount and you (the Medicare beneficiary) pay the remaining 20% of the Medicare-approved amount.
- Part B Premiums: The new monthly premium decreases by $5.20, from $170.10 in 2022 to $164.90 per month beginning January 1. The income-related monthly adjustment amount (IRMAA) has increased to $97,000 for individuals and $194,000 for couples. The monthly premium for that tier will be $230.80 (compared to $238.10 for 2022). For those in the highest IRMAA tier, the premium will be $560.50 per month (compared to $578.30 in 2022).
- Initial Part D Deductible: The initial Part D deductible will increase by $25 (from $480 in 2022 to $505 in 2023).
- Initial Part D Coverage Limit: The initial Part D coverage limit will increase by $230 (from $4,430 in 2022 to $4,660 in 2023), where the 2023 “Donut Hole” begins.
- The 2023 Donut Hole begins once you reach your Medicare Part D plan’s initial coverage limit at $4,660 and ends when you spend an out-of-pocket total of $7,400, when Catastrophic coverage begins.
- The “Donut Hole Discount”: Part D enrollees will receive a 75% “Donut Hole Discount” on the total cost of their brand-name drugs purchased while in the Donut Hole. The discount includes a 70% discount paid by the brand-name drug manufacturer and a 5% discount paid by your Medicare Part D plan. The drug manufacturer’s 70%, plus the 5% Part D plan discount, plus the 25% you pay are combined to count toward your Donut Hole exit point.
If you’re still confused about Medicare, you can visit ToniSays.com for information about upcoming Zoom webinars, including one on Wednesday, November 16 at 4 p.m. CST.
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Toni King is an author and columnist on Medicare and health insurance issues. She spent more than 27 years as a top sales leader in the field. For a Medicare checkup, email: or call 832-519-8664. You can now visit www.seniorresource.com/medicare-moments to listen to her Medicare Moments podcasts.
Each year, the Social Security Administration adjusts costs associated with the Medicare program by raising or lowering premiums and deductibles using rules set out in the Social Security Act. For 2023, Medicare Part B premium prices are going down, while premiums and deductibles for Part A are going up slightly. We'll explain why.
The income brackets and amounts for adjustments to Part D prescription drug coverage have also been slightly revised. Additionally, if you receive Social Security payments, the cost-of-living benefits increase for 2023 has been announced. "This means that seniors will have a chance to get ahead of inflation, due to the rare combination of rising benefits and falling premiums," press secretary Karine Jean-Pierre said during a White House briefing.
Here's how much the prices will go down for those who receive Medicare Part B and what the new costs will be next year. Note: The open enrollment period for Medicare ends Dec. 7.
How much less will Medicare Part B cost in 2023?
You won't see a hefty reduction in the amount you currently pay, but it will be less than what you're paying. Here's how payments break down for Medicare Part B full coverage in 2023.
Standard monthly premium: $164.90 in 2023, a decrease of $5.20 from $170.10 in 2022.
Annual deductible: $226 in 2023, a decrease of $7 from the annual deductible of $233 in 2022.
If you earn more than $97,000 as a single tax filer, or $194,000 as a joint filer, you'll have to pay a little extra for Medicare Part B. Here are the income-related adjustments for Part B full coverage in 2023.
Medicare Part B income adjustments
| Joint tax filers' income | Monthly adjustment | Total premium |
| $194,000 or less | $0 | $164.90 |
| $194,001 - $246,000 | $65.90 | $230.80 |
| $246,001 - $306,000 | $164.80 | $329.70 |
| $306,001 - $366,000 | $263.70 | $428.60 |
| $366,001 - $749,999 | $362.60 | $527.50 |
| $750,000 or more | $395.60 | $560.50 |
Why is Medicare Part B cheaper in 2023?
The Centers for Medicare and Medicaid Services recommended in May that any excess Supplementary Medical Insurance Trust Fund money be passed along to those with Medicare Part B coverage. This is to help decrease the costs of the premium and deductibles. While most Medicare recipients get Part A for free, everyone has to pay for Part B.
This year's Part B premium was projected to cover spending for a new drug called Aduhelm, which is intended to treat Alzheimer's disease. Since less money was spent on that drug and other Part B items, there were more reserves left over in the Part B account of the SMI fund, which will now be used to limit future Part B premium increases.
Medicare Part A premiums will rise a little in 2023.
James Martin/CNETMedicare Part A premiums and deductibles are going up in 2023
While Medicare Part B is seeing a decrease in premiums next year, those who have to pay for Medicare Part A will see very slight premium increases in 2023. Those who've worked more than 30 calendar quarters (but fewer than 40) will pay $278 a month, versus $274 in 2022. Those with less qualifying employment history will pay $506 a month, compared with $499 in 2022.
It's important to note that 99% of Medicare recipients don't have to pay anything for Part A because they've worked 40 calendar quarters (10 full years) while paying Medicare taxes.
The deductibles for Medicare Part A are also rising by about 2.8% each. Here's a breakdown of what's going up.
Inpatient hospital deductible: $1,600 in 2023, an increase of $44 from $1,556 in 2022.
Daily coinsurance for the 61st through the 90th day: $400 in 2023, an increase of $11 from $389 in 2022.
Daily coinsurance for lifetime reserve days: $800 in 2023, an increase of $22 from $778 in 2022.
Skilled Nursing Facility coinsurance: $200 in 2023, an increase of $5.50 from $194.50 in 2022.
What are the 2023 income adjustments for Medicare Part D?
If you receive Medicare Part D for prescription drug coverage -- which received a massive boost this year from the passage of the Inflation Reduction Act -- and earn more than a certain amount, you'll need to pay extra monthly. The adjustment amounts for each income tier haven't changed much at all from 2022, but the income brackets themselves all rose about 6%.
Medicare Part D income adjustments
| Joint tax filers' income | Part D adjustment |
| $194,000 or less | $0 |
| $194,001 - $246,000 | $12.20 |
| $246,001 - $306,000 | $31.50 |
| $306,001 - $366,000 | $50.70 |
| $366,001 - $749,999 | $70 |
| $750,000 or more | $76.40 |
What do Medicare Parts A and B cover?
Medicare Part A covers inpatient hospital, skilled nursing facility, hospice, inpatient rehabilitation and some home health care services.
Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment and certain other medical and health services not covered by Medicare Part A.
Medicare Part D helps cover prescription drug costs.
For more information, here's when you can sign up for Affordable Care Act plans.