Not only do Medicare plans change with regard to their coverage and drug formularies; the monthly premiums can change from one year to the next, too. Medicare beneficiaries are sometimes dismayed to learn of premium hikes, so this year we have some good news: Your premiums will actually go down a bit in 2023!
Most beneficiaries receive Medicare Part A for free, because they accumulated enough work credits in their lifetimes. So for the most part, premium adjustments apply to Medicare Part B. For most of you, the new Part B premium for 2023 will be $164.90, which represents a small decrease of just over five dollars. Your deductible will go down a bit, too, at $226 for the year.
That premiums and deductible will apply to most Part B beneficiaries, but about 7 percent of Medicare recipients pay higher premiums due to falling into a higher income tax bracket. If you’re an individual earning more than $97,000 annually, or a married couple earning more than $194,000 annually, consult with your Medicare broker. Your premiums are higher, and are based upon the particular income bracket into which you fall.
As we mentioned, Medicare Part A is free to most. But a deductible does apply to hospital stays. For 2023, your share of the hospital bill will amount to $1,600 for the first 60 days of hospitilization. If your stay exceeds 60 days, you will pay a $400 coinsurance charge between 61 and 90 days, and $800 dollars per day thereafter.
The Medicare Annual Election Period is happening now, so this is the time to investigate your plan options. Give us a call if you’re concerned about your plan’s network, drug formulary, coverage limits, premiums, or anything else. We can help you compare different Medicare plans and choose one that suits your medical needs and budgt.