diagram

Media / Blog

A Bit of Good News About 2023 Medicare Costs

Prev

Understanding the Claim Process for Surety Bonds vs. Insurance

October 16, 2022

Medicare Open Enrollment begins on October 15 and runs through December 7. The Centers for Medicare and Medicaid Services recently announced Medicare Part A and B costs for 2023. Medicare costs generally rise from year to year. While some costs are increasing again in 2023, you may be pleasantly surprised to learn that some costs are actually going down. Here are the details:

Medicare Part A - covers inpatient hospitalizations, care in skilled nursing facilities, hospice, inpatient rehabilitation, and some home health care services.

Part A premiums will increase slightly in 2023, but most people do not pay a premium for Part A because they or their spouse paid Medicare taxes and worked more than 10 years. For those who do not qualify for "premium-free Part A", the monthly premium in 2023 will be $278 or $506 (up from $274 or $499 in 2022), depending on how long they or their spouse worked and paid Medicare taxes.

The Part A deductible covers up to the first 60 days of an inpatient hospital stay. Each hospital stay is called a "benefit period". The deductible is increasing by $44 to $1,600 in 2023. Note that you can have multiple benefit periods in one year and the deductible must be paid for each of them.

Medicare Part A beneficiaries incur costs (called "copayments") for longer hospital stays. The copayments are increasing in 2023.

  • Days 1-60: $0
  • Days 61-90: $400 copayment per day (up from $389 in 2022)
  • Days 91-150: $800 copayment per day (up from $778 in 2022)
  • After day 150: Patient pays all costs

Medicare Part B - covers items such as doctors and other health care providers, outpatient, and home health care, as well as medical equipment and preventative services like vaccines and yearly wellness visits.

The base monthly premium for Medicare Part B in 2023 will be $164.90, a decrease of $5.20 (~3% from 2022).

  • This is only the third time in the history of Medicare, which was signed into law by President Lyndon Johnson in 1965, that the Part B premium is decreasing.
  • There have been 11 years in which the premium did not change
  • The largest increase was in 2022 when the premium increased by $21.60 (14.5%) to $170.10

The additional premium paid by higher income earners, called Income Related Monthly Adjustment Amount (IRMAA), is also being reduced as shown in the table below:

The annual deductible for all Medicare Part B beneficiaries will be $226 in 2023, down from $233 in 2022.

The Medicare Part B beneficiary pays 20% of the Medicare-approved amount for services and items after the deductible has been paid. The 20% paid by the Medicare beneficiary is called "coinsurance".

People who prefer original Medicare usually purchase Part D (prescription coverage) and Medigap policies (also called" Medicare Supplement Plans") from private insurers to cover deductibles, coinsurance, and copayments. Others choose Part C (Medicare Advantage Plans sold by private insurers) instead of Part D and Medigap to cover out of pocket costs and cover additional services (e.g., dental, vision, hearing). Be sure to carefully consider the pros and cons of Original Medicare and Medicare Advantage" in making your decision.

Next

The Many Ways Interest Rate Hikes Affect You

About the author

a man wearing a suit and tie smiling at the camera

Steve B. Goldstein

Vice President, Private CFO®

Steve Goldstein is Vice President, Private CFO® with oXYGen Financial, Inc., and is based in Alpharetta, Georgia. He is a 19 year veteran of the financial services industry whose specialty is helping Baby Boomers and older Gen X'ers plan and manage their finances as they transition and live in retirement.

Steve holds the Certified Financial Planner, Chartered Retirement Planning CounselorSM and Retirement Income Certified Professional® designations. His background also includes an MBA degree in Finance and Accounting from the University of Rochester and a BA degree in Business Economics from The State University of New York at Oneonta.

Steve was born and raised in the Bronx, NY and moved to the Atlanta area with his wife and children in 1994. In his spare time, Steve enjoys watching sports, exercising regularly, playing classic rock and blues guitar, and tackling home improvement projects.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. Investor Disclosures: https://bit.ly/KF-Disclosures

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

Background and qualification information is available at FINRA's BrokerCheck website.

Sign Up

Sign up for our exclusive Sunday Paper with a weekly market commentary, insightful personal finance blogs, and life changing education guides.

Email sign up

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 844-553-7872.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.