Will the Medicare Part B Premium Decrease in 2023?

The Centers for Medicare & Medicaid Services (CMS) recently released the 2023 Medicare costs. After a year of high premium and deductible increases across the board in 2022, Medicare enrollees are in for a rare surprise in 2023.

We project that many seniors will be excited to hear this news as Medicare costs are decreasing for the upcoming year.

Medicare Part B Premium Sees a Decrease in 2023

On September 27, 2022, CMS announced the 2023 Medicare Part A and Part B premiums and deductibles, as well as the Medicare Part B and Part D Income-Related Monthly Adjustment Amounts.

The standard Medicare Part B premium will decrease from $170.10 in 2022 to $164.90 in 2023. This is a 3% decrease year-over-year. Typically, the Medicare Part B premium will see an annual increase.

Yet, in 2022, Medicare spending did not hit the projected numbers, so those on Medicare will reap the reward in the upcoming year.

However, as Medicare Part B costs see a decrease, Part A costs will trend upwards in 2023. While Medicare Part A has a zero premium for most enrollees, those who do not meet the required number of working quarters in the United States may need to cover at least part of the Medicare Part A premium each month.

If you have worked less than 30 quarters in the U.S. while paying Medicare taxes, your Medicare Part A premium will rise from $499 in 2022 to $506 in 2023. This is a $7 increase each month for those responsible for Medicare Part A premiums.

Those with 30 or more quarters but less than 40, your Medicare Part A premium will rise from $274 in 2022 to $278 in 2023. A $4 increase each month.

Additionally, the Medicare Part D average premium will decrease from $32.08 in 2022 to $31.50 in 2023. Keep in mind each Medicare Part D plan premium is different. So, your plan costs may vary.

What are the Medicare Deductibles and Coinsurance in 2023?

Like its premium, the Medicare Part B deductible will decrease in 2023. In 2023, the Medicare Part B deductible will be $226, down 3% from the previous year. However, the standard 20% coinsurance after you meet the Medicare Part B deductible will remain the same.

In contrast, the Medicare Part A deductible and coinsurance will increase from 2022 to 2023. The Medicare Part A deductible will rise to $1,600 in 2023 from $1,556 in 2022. Additionally, the coinsurance amounts for Medicare Part A will also increase.

Additionally, the Medicare Part D maximum deductible will increase in 2023. In 2023, the maximum Medicare Part D deductible will be $505, a $25 increase from 2022. However, your plan’s actual deductible may be lower than $505, and your coinsurance amounts will depend on your plan’s drug formulary.