…Medicare’s annual enrollment period beginning October 15
I recently signed up for Medicare and received my Medicare and You 2023 handbook, but I can’t find what the Medicare 2023 costs will be. Any idea of the new Medicare costs? Thanks.
–Sarah from San Antonio
Each year, the Medicare and You Handbook is printed and mailed by October 1 to all Medicare beneficiaries to guide them through the annual Medicare enrollment period that ends December 7.
The manual says that at the time of printing, premiums and deductible amounts for Medicare Part A, Part B, and Part D were not available.
Guess what? The Centers for Medicare & Medicaid Services released 2023 Medicare Part A and B premiums and costs on September 27, with a Medicare Part B premium and deductible lowered.
All other parts of Medicare, such as Medicare Part A (inpatient hospital care) and Medicare Part D (prescription drugs), increased.
Here is an overview of the 2023 Medicare Part A, B and D premiums and costs:
– Costs of part A (hospital hospital): The new Part A inpatient hospital deductible will increase by $44 from $1,556 in 2022 to $1,600 for 2023. The Part A deductible begins every 60 days; it is not an annual deductible but six times a year. Part A includes Medicare Skilled Nursing and the 2023 costs will be a $0 copay per day for days 1-20. Days 21-100 will be a $200 copay per day.
– Costs of part B (medical): The new Part B medical/physician deductible will increase from an annual deductible of $233 to $226 effective January 1. Medicare will always pay 80% of the Medicare-approved amount and you (the Medicare beneficiary) pay the remaining 20% of the Medicare-approved amount.
– Part B premiums: The new monthly premium decreases by $5.20, from $170.10 in 2022 to $164.90 per month beginning January 1. The monthly income-related adjustment amount has increased to $97,000 for individuals and $194,000 for couples. The monthly premium for this level will be $230.80 (compared to $238.10 for 2022). For those in the highest IRMAA level, the premium will be $560.50 per month (compared to $578.30 in 2022).
– Initial deductible of part D: The initial Part D deductible will increase by $25 (from $480 in 2022 to $505 in 2023).
– Initial coverage limit of Part D: The initial Part D coverage limit will increase by $230 (from $4,430 in 2022 to $4,660 in 2023), where the 2023 “Donut Hole” begins.
– The 2023 Donut Hole begins once you reach your Medicare Part D plan’s initial coverage limit of $4,660 and ends when you spend a total of $7,400, when catastrophic coverage begins.
– The “Donut Hole Discount”: Part D enrollees will receive a 75% “Donut Hole discount” on the total cost of their brand name drugs purchased from the Donut Hole. The discount includes a 70% discount paid by the brand name drug manufacturer and a 5% discount paid by your Medicare Part D plan. The 70% from the drug manufacturer, plus the 5% discount on the part D, plus the 25% you pay is combined to count towards your Donut Hole exit point.
If you’re still confused about Medicare, you can visit ToniSays.com for information on upcoming Zoom webinars, including one at 4 p.m. CST on Wednesday, November 16 at 4 p.m.
Toni King is an author and columnist on Medicare and Medicare issues. She has spent over 27 years as a sales leader in the field. For a Medicare health check, email: [email protected] or call (832) 519-8664. You can now visit www.seniorresource.com/medicare-moments to listen to his Medicare Moments podcasts.