Every year Medicare beneficiaries wait with bated breath to see how much of their hard-earned social security dollars are going to be eaten up by the increases to Medicare. This year we have two historic announcements for both social security and Medicare! Social Security has not officially announced the increase yet though it is expected to be around 8.7%, this will be the largest increase ever! Then your Medicare part B premium and part B deductible are going DOWN!
Part B covers physician services, outpatient hospital services, durable medical equipment and other medical and health services not covered by part A. For 2023 the standard Part B premium will be going down to $164.50 a decrease of $5.20 from $170.10. The annual deductible for part B will be $226, a decrease of $7 from $233 in 2022.
In 2022 we saw a huge increase in the part B premium due to the estimation of the cost of a new Alzheimer’s medication called Aduhelm. The cost and usage were still unknown going into 2022, so to get ahead and create extra reserves for the Medicare Trust fund the Center for Medicare and Medicaid Services, CMS, increased the premiums significantly. However due to a lower cost and usage than anticipated the premium reduction is an attempt from CMS to pass some of the reserves back to people with Medicare Part B coverage.
Medicare Annual Enrollment period for 2023 will begin October 15, 2022 and end December 7, 2022. This is the time when people eligible for Medicare can compare the upcoming 2023 coverage between Original Medicare, Medicare Advantage and Part D Prescription Drug plans. Medicare health and drug plan costs and coverages can change year over year, so people with Medicare should look at the coverage options annually to decide on the options that fit their health needs.
Part A covers a portion of hospital costs for beneficiaries the part A deductible for 2023 is increasing from $1556 to $1600, a small $44 increase. Still not terrible to be covered for the first 60 days of hospitalization. The second part of part A is a stay in a Skilled Nursing Facility, or SNF, for recovery after a hospital stay Medicare covers the first 20 days in a SNF at no cost to the beneficiary. That is a slight increase from $194.50 to $200 per day after day 20.
Part A is no cost for the majority of Medicare beneficiaries, however, if they or their spouse do not have at least 40 quarters of work credits then you have to pay for part A. That cost is based on the number of quarters you do have. For those with at least 30 quarters, the premium to buy part A is $278, a $4 increase from 2022. Those with less than 30 quarters pay the full premium of $506, an increase of $7.