The Centers for Medicare and Medicaid Services (CMS) recently announced that the 2023 standard monthly premium for Medicare Part B beneficiaries is $164.90, which is a slight decrease compared with $170.10 in 2022.
The annual deductible for all Part B enrollees will be $226 in 2023, decreasing from $233 in 2022.
The Medicare Part B premium, deductible, and coinsurance rates are determined annually based on the Social Security Act.
According to CMS, the 2022 Part B premium was designed with a margin to cover estimated Part B spending on Aduhelm, a new prescription drug. Lower-than-expected spending on Aduhelm and other Part B services and items led to higher reserves in the Part B account of the Supplementary Medical Insurance (SMI) Trust Fund. These reserves can be used to reduce increases in future Part B premium rates and resulted in a decrease in the 2023 rate.
Medicare Part B generally covers two types of medical services: medically necessary services or supplies and preventive services. Some examples include:
• Medically necessary doctors’ services
• Outpatient care
• Preventive services
• Durable medical equipment
• Part-time or intermittent home health and rehabilitative services
The Medicare Part A inpatient deductible will increase by $44 in 2023, making it $1,600, up from $1,556 in 2022. Medicare Part A covers inpatient hospital stays, skilled nursing care, hospice, inpatient rehabilitation, and some home health services. Though this deductible is increasing, 99% of Medicare beneficiaries don’t pay a Part A premium.
If you are currently a client of RetireMed and have questions about the Medicare Part B rates for 2023, please schedule a call with a client advisor.
If you are new to Medicare and have questions, our advisors are here to help you navigate your health coverage. Schedule a call to get your questions answered!