GOOD NEWS…PREMIUMS DOWN | BAD NEWS…COST SHARING UP
The standard premium for Medicare Part B, which covers outpatient care, will decrease slightly from $170.10 to $164.90. Not a large decrease but certainly some welcome news in light of today’s inflation and rising costs for almost everything else. Another piece of good news is that the Part B deductible is decreasing from $233 to $226 in 2023.
Unfortunately, that’s where the good news ends as the cost sharing for other Medicare services is increasing. For starters, the deductible for Medicare Part A (hospital coverage) per benefit period (which generally starts when you are admitted to the hospital) will be $1,600 in 2023, up $44 from the 2022 deductible of $1,556.
Other Copays Are Also Increasing
Medicare has built-in cost sharing. If you’re enrolled in traditional Medicare (Parts A & B), not only do you have a separate Part A and Part B deductible and a premium for Part B, there are additional copay requirements when you are in the hospital or skilled nursing facility for an extended period. Here is a helpful layout of your cost share responsibilities compared to 2022:
If You Make More, You’ll Pay More
If you’re a Medicare beneficiary who earns over $97,000 a year (or over $194,000 if filing jointly), and are enrolled in Medicare Part B and/or Medicare Part D, you will be assessed an Income-Related Monthly Adjusted Amount (IRMAA), which is a surcharge added to the Part B and Part D premiums.
Since 2007, higher-income Medicare enrollees have been required to pay the IRMAA surcharge for Part B coverage. An IRMAA surcharge for Part D premiums took effect in 2011.
IRMAA is determined using your income tax returns two years prior. (For example, your 2023 Medicare premiums are determined using your 2021 income tax return). This amount is recalculated annually and there is an appeals process if your financial situation has changed.
IRMAA is determined using a form of Modified Adjusted Gross Income (MAGI) unique to Medicare. This MAGI is different from your Adjusted Gross Income (AGI) because it includes additional income sources not used to calculate AGI.
You Have Options To Help You Minimize Your Expenses!
We represent multiple Medicare Advantage, Medicare Supplement and Prescription Drug Plans (PDPs) from highly rated insurance companies that are designed to meet a wide range of budgets and coverage needs. If you have questions about Medicare benefits and how your current plan stacks up to what’s available…contact us! We provide consultation services at no cost to you. Our only interest is placing you in a plan that you can afford and meets your needs.