If you are at least 65 and aren’t covered by an employer health insurance plan, then you will probably need to enroll in Medicare.
Every year, there are copays, deductibles, and premiums to be paid. These numbers typically adjust from year to year, so you don’t have to be caught unprepared when they change this year in 2023.
Once again, Social Security recipients have been given a large COLA (cost of living adjustment) for their benefits, which can play into these updates here. Here are the critical numbers that are important to know regarding Medicare benefits in 2023.
Medicare Part A Premiums
Original Medicare consists of Medicare Parts A and B. If you paid payroll taxes on your lifetime wages for less than 30 quarters, then you must pay the premium for Medicare Part A.
This premium has risen to $506 per month in 2023, up from the $499 that was charged last year. If you paid payroll tax for anywhere from 30 to 39 quarters, then your monthly premium will rise to $278 per month. That is an increase from $274 per month in 2022.
Medicare Part A Deductibles and Coinsurance
The inpatient hospital deductible has risen to $1,600 per benefit period in 2023. That is up from $1,556 per month charged in 2022.
As for coinsurance, there is still a $0 copay for hospital stays of up to 60 days. For days 61 through 90, you will have to pay coinsurance of $400, a hike from 2022’s price of $389 per day.
After 90 days, the daily coinsurance amount rises to $800 per day, up from 2021’s price of $778 per day. Each Medicare participant gets 60 lifetime reserve days over the span of their life.
Copays for skilled nursing care is still $0 for the first 20 days. Then the price rises to $200.00 per day for days 21-100 of each benefit period, an increase from 2022’s cost of $194.50.
Medicare Part B Premiums and Deductibles
Medicare Part B has seen changes for 2023.
In 2023, this premium will cost $164.90 per month, which is down from the $170.10 per month charged in 2022. But these numbers only apply to single or head of household filers who have incomes of less than $91,000, or joint filers with incomes of less than $182,000.
Those with incomes above these thresholds must pay at least $65.90 per month more in 2023. People with super-high incomes can pay as much as $395.60 more per month in 2023.
This is on top of the standard Part B premium of $164.90. So, a high-income earner might have to pay a total of $560.50 per month ($395.60 + $164.90).
The 2023 annual deductible for Medicare Part B is set at $226, compared to $233 in 2022.
Medicare Part D Premiums and Copays
Part D of Medicare has seen a change in price from 2022 to 2023.
In 2022, the average Medicare Part D premium was $32.08 per month. Now, the average premium in 2023 is $31.50 per month.
What about folks with incomes above the thresholds, as discussed before? They will have to pay anywhere from an additional $12.20 per month to $76.40 per month on top of their standard Part D premiums.
Medicare Advantage Plan Ratings
Medicare Advantage plans are covered in what is also known as Medicare Part C.
They are bundled plans that encompass everything covered by Original Medicare and usually also Part D. They also often contain other ancillary benefits such as coverage for dental, hearing, and vision care, fitness memberships, stipends for over-the-counter expenses, and meal delivery.
Every year, the Centers for Medicare and Medicaid Services assigns a star rating to these plans. One star is the lowest and five stars are the highest.
These ratings can change from one year to the next. They are based primarily on the customer satisfaction feedback that they receive, along with the overall quality of the services and care that each plan provides.
In 2023, the average rating for these plans came in at 4.15. The average rating was 4.37 in 2022.
Medicare Advantage Premiums
In 2023, the average cost for Medicare Part C is $28.00 per month.
Of course, Medicare Advantage enrollees must also still pay the Part B premium of $164.90 per month in addition to their Part C premiums.
As of November 2022, more than 28 million Medicare beneficiaries were enrolled in a Medicare Advantage plan — over half of the total Medicare population.
There are a total of 3,998 Medicare Part C Plans being offered in 2023, which is an 6% increase from 2022.
Making Changes to Medicare
If you want to change your Medicare plan from Parts A and B to Part C, find another Medicare Advantage Plan or pick up Part D coverage, you can do this during Open Enrollment, which lasts from October 15th to December 7th.
If you realize that you enrolled in the wrong plan, then there is a Medicare Advantage enrollment period from January 1 to March 31st. During this period, you can switch to another Medicare Advantage plan or switch back to Parts A and B with the option to pick up Part D coverage.
Your new coverage will start at the beginning of the month, after the month in which you requested your change.
Some Final Thoughts to These Important Medicare Updates
There are changes to the premiums, deductibles, and copays with Medicare every year. Some changes are larger than others on an annual basis.
If you have any questions about these numbers or other aspects of Medicare that might impact you, contact your agent or financial professional for more information.
They can go over these details with you in greater depth, including whether any specific coverage might make sense for you. If you are looking for an agent or financial professional to assist you with your Medicare options, then no sweat. Many independent agents and financial professionals are available at SafeMoney.com to help guide you.
Get started by using our “Find a Financial Professional” section to connect with someone directly. You can request an initial meeting to discuss your health insurance needs and explore a potential working relationship. Should you need a personal referral or something else relating to your retirement needs, please feel free to call us at 877.476.9723.