Medicare Premiums Part A: How much will it cost and what will be the impact of COLA 2023 on it?
The Centers for Medicare & Medicaid Services has released the Medicare premiums, deductibles, and coinsurance amounts for 2023. Here’s a look…
The Social Security Administration announced its fourth largest COLA increase since they began in 1975 increasing the average amount that a beneficiary receives each month by over $140. While inflation is still taking a bite out of household finances, Medicare premiums in general are set to decrease next year.
While the vast majority of Medicare beneficiaries do not have to pay any premiums for Part A coverage, one of four parts of the government subsidized healthcare program, those that are required to pay will see a slight increase in 2023 to buy into this portion of Medicare. Deductibles and coinsurance amounts will also rise somewhat next year. Here’s a rundown the costs you can expect.
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Medicare Part A
Recipients must be: Aged 65 or older; or disabled; or suffering from End-Stage Renal Disease (ESRD)
Part A relates to hospital inpatient services, helping to cover the cost of hospital, nursing facility and hospice services. This coverage will typically also include any supplies and pharmaceuticals required while the patient is in hospital. It can even cover physical and occupational therapy required for homebound patients, and counselling for the terminally ill.
Medicare Part A premiums
Most retirees receive Medicare Part A coverage for free, around 99 percent according to the Centers for Medicare & Medicaid Services (CMS). This is because they paid Medicare taxes throughout their careers over the 40 quarters required, equivalent to 10 years.
However, those with fewer than the full amount who are age 65 and older or certain people with disabilities can voluntarily enroll in Medicare Part A by paying a monthly premium.
In 2023, those who acquired, or were married to someone who had, a minimum of 30 quarters of coverage, will be able to purchase Part A coverage at the reduced monthly premium rate of $278, an increase of $4 over last year’s rate.
Eligible older individuals that can buy into Medicare Part A but have less than 30 quarters of coverage as well as people with disabilities but have exhausted other entitlement will pay the full premium. This will increase by $7 in 2023 to $506 per month.
Medicare Part A coinsurance and deductible rates
If admitted to hospital, beneficiaries will pay a deductible of $1,600 for Medicare Part A coverage in 2023, a $44 increase over last year. The deductible covers an enrollees’ share of approved inpatient hospital costs covered by the program for the first 60 days in a benefit period.
Beyond that period, they must pay a $400 per day coinsurance for the 61st through 90th day of hospitalization during a benefit period, up from $389 in 2022. Then $800 per day for lifetime reserve days, a $22 increase over last year.
Those with Medicare Part A coverage in skilled nursing home facilities will pay a $200 daily coinsurance for days 21 through 100 of extended care services during the benefit period.