Premiums, deductibles, and copays for Medicare Parts A and B next year were recently announced by the Centers for Medicare and Medicaid Services (CMS). So, what will Medicare cost in 2023? Here’s the scoop.
Medicare Part B
The standard monthly premium for Medicare Part B enrollees will be $164.90 for 2023, a decrease of $5.20 from $170.10 in 2022. CMS also announced in 2023, enrollees pay $226 for their Part B deductible. Compare this to $233 in 2021.
See the chart below for a breakdown from CMS if an enrollee’s modified adjusted gross income as reported on their IRS tax return from 2 years ago is above a certain amount. An Income Related Monthly Adjustment Amount (IRMAA) will be an extra charge added to their premium.
|File Individual Tax Return||File Joint Tax Return||2023 Part B Monthly Premium|
|Less than or equal to $97,000||Less than or equal to $194,000||$164.90|
|Greater than $97k and less than $123k||Greater than $194k and less than $246k||$230.80|
|Greater than $123k and less than $153k||Greater than $246k and less than $306k||$329.70|
|Greater than $153k and less than $183k||Greater than $306k and less than $366k||$428.60|
|Greater than $183k and less than $500k||Greater than $366k and less than $750k||$527.50|
|Greater than or equal to $500,000||Greater than or equal to $750,000||$560.50|
|File Married & Separate Tax Return||2023 Part B Monthly Premium|
|$97,000 or less||$164.90|
|above $97k up to $403k||$572.50|
|Greater than or equal to $403,000||$560.50|
Medicare Part A
Medicare Part A covers inpatient hospital, skilled nursing facility, and some home health care services. Enrollees usually don’t pay a monthly premium for Medicare Part A coverage if they or their spouse paid Medicare taxes for a certain amount of time while working. Click here to learn more about a “premium-free Part A.”
If your client doesn’t qualify for premium-free Part A, they can buy Part A. People who buy Part A will pay a premium of either $274 or $499 each month in 2022 ($278 or $506 each month in 2023) depending on how long they or their spouse worked and paid Medicare taxes. If your client chooses to not buy Part A, they can still buy Part B.
In most cases, if you choose to buy Part A, you must also:
- Have Medicare Part B (Medical Insurance)
- Pay monthly premiums for both Part A and Part B
When Coverage Begins
It’s also important to note when your plan will begin based on your enrollment time:
- Enrolling 3 months before your 65th birthday: Medicare coverage will begin the first of the month you turn 65.
- Enrolling during the month of your 65th birthday: Medicare coverage will begin the first of the next month.
- Enrolling 1-3 months after your 65th birthday: Medicare coverage will begin the first day of the following month of enrollment.
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