Medicare premiums won’t increase for most people in 2023

The Social Security Administration (SSA) announced on Thursday, Oct. 13 that Social Security recipients will obtain an 8.7% cost-of-living increase in their advantages starting January 2023. 

The 2023 cost-of-living adjustment (COLA) is the fourth largest in Social Security’s historical past. The common recipient’s cost will increase by about $140 a month.

After the announcement, a number of VERIFY readers questioned if the additional cash in their month-to-month Social Security checks will likely be eaten up by increased month-to-month funds, or premiums, for Medicare subsequent yr. 

“Nice to see the COLA being increased, but will Medicare and MedicareRX rates increase, too? They are always what kills any COLA increase,” readers Ella and Ray H. wrote in an electronic mail to VERIFY. 

More from VERIFY: Yes, Social Security’s 2023 cost-of-living increase is the best since 1981

Will Medicare premiums increase for most recipients in 2023?

No, Medicare premiums won’t increase for most recipients in 2023. 

The customary Medicare Part B premium is lowering by about 3%. Federal officers additionally anticipate the typical premiums for Parts C and D, that are plans supplied by personal firms, to drop subsequent yr. 

After a historic increase in Medicare Part B premiums in 2022, premiums will lower for most Medicare recipients subsequent yr. 

Medicare is federal medical health insurance for anybody age 65 and older, and a few people beneath 65 with sure disabilities or situations. It’s made up of 4 elements: A, B, C and D. 

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Medicare Part A, known as hospital insurance coverage, helps cowl inpatient hospital care, expert nursing facility care, hospice care and residential well being care. 

Most people aged 65 and older don’t pay a Part A premium. This is as a result of the federal government costs employees Medicare taxes over the length of their profession and makes use of the cash to cowl these prices.  

Though most people don’t pay a premium for Medicare Part A, there are nonetheless prices they might should cowl. For instance, the annual deductible – the quantity you pay for coated well being care providers earlier than your insurance coverage plan begins to pay – for inpatient hospital stays is rising from $1,566 in 2022 to $1,600 in 2023, the Centers for Medicare and Medicaid Services (CMS) said in a fact sheet published on Sept. 27. 

Part B, known as medical insurance coverage, covers outpatient care, medical gear equivalent to wheelchairs and walkers, and plenty of preventive providers equivalent to screenings, vaccines and yearly “wellness” visits, CMS says. 

Though Part B is elective, most people have each Parts A and B, CMS says. 

Those who’ve Medicare Part B pay a premium each month, which is set yearly in line with the Social Security Act, in line with CMS. That premium is automatically deducted from Social Security recipients’ month-to-month checks. 

Most people pay the usual premium that applies to people with an revenue of as much as $97,000 per yr and {couples} with an annual revenue of not more than $194,000. Some recipients with increased incomes pay extra for Medicare Part B.

The customary month-to-month premium for people with Medicare Part B will likely be $164.90 in 2023, a lower of $5.20 from $170.10 in 2022, according to CMS. 

“This will mean that most [Social Security] beneficiaries will see more money after the deduction for Medicare premiums,” Johnson said. 

The annual deductible for these with Part B can also be lowering by $7 from $233 in 2022 to $226 in 2023.

This comes after it elevated by 14.5%, one of many highest jumps in Medicare historical past, in 2022. 

The premium jumped as excessive because it did in 2022 to cowl projected spending for a brand new Alzheimer’s drug known as Adhuhelm, Johnson defined. 

When CMS reassessed the 2022 premium, the company decided it was increased than obligatory and is now utilizing the surplus funds to scale back the 2023 premium, Johnson mentioned. 

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Medicare Advantage Plans, typically known as Part C, are plans supplied by personal firms authorized by Medicare, fairly than the federal authorities. The plan will present your Part A hospital insurance coverage and Part B medical insurance coverage protection. Most Medicare Advantage plans additionally embody Part D prescription drug protection. You can learn extra about how Medicare Advantage plans work right here. 

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Monthly premiums for Medicare Advantage differ primarily based on which plan an individual joins and the quantity can change yearly.

The projected common premium for 2023 is $18 per 30 days, a decline of practically 8% from the typical premium of $19.52 in 2022, according to a news release from the Department of Health and Human Services (HHS). But that doesn’t imply the premium for each coverage will decline, since each is completely different. 

Medicare Part D is the elective prescription drug profit. It’s additionally supplied by means of personal firms authorized by Medicare. 

Part D premiums differ relying on the plan you’ve. But CMS did announce in July that the typical primary month-to-month premium for Medicare Part D is projected to lower by 1.8% from $32.08 in 2022 to $31.50 in 2023.

Again, your premium could rise in 2023, since every coverage is completely different. 

Additionally, about 8% of people with Medicare Part D who’ve a person revenue of greater than $97,000 or a joint revenue of over $194,000 can pay extra in month-to-month premiums. 

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