Much to nobody’s surprise, there have been plenty of Medicare changes in 2023. Most you’ll like; a few you won’t. Here is a breakdown of those changes for you to read today and refer back to in the months ahead as you use your Medicare benefits.
Medicare Part A Costs are Rising in 2023
Part A costs are rising across the board in 2023, including your deductible, coinsurance, and premiums (most people don’t pay premiums for Part A).
The hospital deductible, hospital coinsurance, and skilled nursing facility coinsurance are all increasing by 3%.
If you pay Medicare premiums because you paid Medicare taxes for less than 40 quarters, you cost is increasing by 1%.
Medicare Part B Rates & Deductibles are Decreasing
In 2023, the cost of Medicare Part B will drop from $170.10 per month in 2022 to $164.90 in 2023 (-$5.20 per month).
The Medicare Part deductible is also decreasing from $233 in 2022 to $226 in 2023 (-$7.00 per month).
In addition, for people who’ve had a kidney transplant, certain drugs that fight rejection of a donor kidney will be extended beyond the current limit of 36 months.
Medicare Advantage Changes
If you have drug coverage through your Advantage plan (Part C) or Part D, you’ll find that certain types of insulin will be capped at $35 effective January 1, 2023.
And, Vaccines recommended by the Advisory Committee on Immunization Practices will be free, including the vaccine for shingles.
Medicare Part D Changes
The average rate for Part D will be dropping to $31.50 per month in 2023, compared to $32.08 in 2022.
Your other costs for Part D will be increasing. The deductible will increase from $480 in 2022 to $505 in 2023.
And the the threshold for entering the catastrophic coverage phase (getting through the donut hole) will rise from $7,050 in 2022 to $7,400 in 2023.
Also, starting January 1, 2023, all Part D and Advantage plans with prescription coverage will cap the cost of select insulin products at $35.
Another of the positive Medicare changes in 2023: vaccines will be free. You’ll pay no deductible, copay, or coinsurance for vaccines (even the shingles vaccine). All will be covered by Medicare Part D.
Medicare Changes in 2023 for the Initial Enrollment Period
Unlike 2022 when your coverage was delayed for two to three month when you enrolled at the end of the initial enrollment period (IEP), your coverage in 2023 will begin the first day of the following month.
For example, if you turn 65 on September 1st and enroll in Medicare on September 7th, your coverage will start on October 1st.
Also, the general enrollment period (GEP) has had a big change in 2023. Instead of coverage starting July 1st for anyone who enrolled during the GEP in 2022, coverage in 2023 will start on the first day of the month after signing up during the GEP.
The initial enrollment period is a seven-moth period surrounding your 65th birthday and the general enrollment period runs from January to March of each year.
Most of what you’ve seen is good news (especially if you recently received an IRMAA notification). Some costs have gone up, but the increases are reasonable considering the rate of inflation we’ve experienced in 2022.
Sources: all Medicare cost, coverage, and benefit information was obtained from Medicare.gov and CMS.gov.
