How are Medicare costs changing in 2023?
Changes for 2023 include premium and deductible increases for Part A, stable rates for Part B, and better Part D coverage due to the Inflation Reduction Act.
The standard Part B premium will be $164.90 for 2023. This is a $5.20 decrease from the 2022 premium of $170.10.
Part A deductible will increase by $44 in calendar year 2023, to $1,600.
The Part A daily coinsurance amounts will be $400 for days 61-90 of hospitalization in a benefit period; $800 for lifetime reserve days; and $200 for days 21-100 of extended care services in a skilled nursing facility in a benefit period. The monthly Part A premium, paid by beneficiaries who have fewer than 40 quarters of Medicare-covered employment and certain people with disabilities, will increase by $7 in CY 2023 to $506, CMS announced. Certain voluntary enrollees eligible for a 45% reduction in the monthly premium will pay $278 in CY 2023.
The Part B deductible will decrease by $7 in 2023 to $226.
Most people will pay the standard Part B premium amount. But if your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you’ll pay the standard premium amount PLUS an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.
Income Related Monthly Adjustment Amount (IRMAA) for 2023
The income brackets for high-income premium adjustments for Medicare Part B and D start at $91,000 for a single person, but this threshold is expected to increase to $97,000 or $98,000 in 2023.
|If your yearly income in 2021 was||If your yearly income in 2021 was|
|File individual tax return||File joint tax return||File married & separate tax return|
|$97,000 or less||$194,000 or less||$91,000 or less||$164.90|
|above $97,000 up to $123,000||above $194,000 up to $246,000||Not applicable||$230.80|
|above $123,000 up to $153,000||above $246,000 up to $306,000||Not applicable||$329.70|
|above $153,000 up to $183,000||above $306,000 up to $366,000||Not applicable||$428.60|
|above $183,000 and less than $500,000||above $366,000 and less than $750,000||above $91,000 and less than $409,000||$527.50|
|$500,000 or above||$750,000 and above||$409,000 and above||$560.50|