September 27, 2022

Market Update, Medicare

The Centers for Medicare and Medicaid Services just made one of their most important announcements of the year! 2023 premiums, deductibles, and coinsurances for Medicare Part A and Part B programs are listed below.

The standard monthly premium for Medicare Part B enrollees will be $164.90 in 2023.

Part B (Outpatient Medical Insurance)2023 CostDifference from 2022
Annual Deductible$226-$7
Part B Premiums for those with incomes below $97,000 if single, $194,000 if married*$164.90-$5.20

More about Part B: 

Original Medicare Part B (also known as Medical Insurance) covers outpatient hospital / emergency room visits, some preventative care, and physician services. The Part B Monthly Premium in 2023 will be $164.90, which is a decrease of $5.20 from 2022.

This monthly premium is automatically deducted from your social security benefits or railroad retirement board. If you don’t get these benefit payments, your Part B premium is billed.

The Part B annual deductible will be $226 in 2023, which is a decrease of $7 from 2022. After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services (including most doctor services while you’re a hospital inpatient), outpatient therapy, and Durable medical equipment (DME).

The 2022 premium included a contingency margin to cover projected Part B spending for a new drug, Aduhelm. Lower-than-projected spending on both Aduhelm and other Part B items and services resulted in much larger reserves in the Part B account of the Supplementary Medical Insurance (SMI) Trust Fund, which can be used to limit future Part B premium increases. The decrease in the 2023 Part B premium aligns with the CMS recommendation in a May 2022 report that excess SMI reserves be passed along to people with Medicare Part B coverage.

*Medicare Advantage Plans and Medicare Prescription Drug Plans are unaffected by this.

The standard annual deductible for Medicare Part A beneficiaries will be $1,484 in 2023.

Part A (Hospital Insurance)2023 CostDifference from 2022
Hospital Deductible$1,600+$44
Daily Coinsurance$0 for days 1-60 / $400 for days 61-90 / $800 for days 90-150$0
Skilled Nursing Facility Copayment$200+$5.50
Part A Premiums for those with fewer than 30 quarters of Medicare-covered employment$506 / Month+$7
Part A Premiums for those with 30-39 quarters of Medicare-covered employment$278 / Month+$4

More about Part A:

Original Medicare Part A (also known as Hospital Insurance) covers inpatient hospital care, skilled nursing and home health care. The annual deductible for Part A will be $1,600, an increase of $44 from 2022.

This deductible covers beneficiaries’ share of costs for the first 60 days of inpatient hospital care in a benefit period.

For more information on the 2022 Medicare Parts A and B premiums and deductibles (CMS-8080-N, CMS-8081-N, CMS-8082-N), please visit:

Source: Centers for Medicare & Medicaid Services, 2023 Medicare Parts A & B Premiums and Deductibles 2023 Medicare Part D Income-Related Monthly Adjustment Amounts, Sept. 27, 2022.

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