Medicare Premiums Part B: How much will it cost and what will be the impact of COLA 2023 on it?
Medicare Part B premiums jumped 15 percent in 2022 but for the first time in a decade the price next year will reduce. Here’s a look at 2023 Part B costs.
Medicare premiums in general are set to decrease in 2023 and President Biden is touting provisions in the Inflation Reduction Act will bring down prescription drug costs. For the first time in a decade the cost of Medicare Part B premiums will drop.
That will be good news for Medicare beneficiaries who saw Part B premiums spike 15 percent last year and have been watching prices climb due to inflation. Also to aid pocket books next year, the Social Security Administration announced a historic 2023 COLA to help benefits keep pace with rising costs. The 8.7 percent increase was the biggest since 1981.
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Medicare Part B
Recipients must be: Aged 65 or older; or disabled; or suffering from End-Stage Renal Disease (ESRD)
For outpatient coverage, meaning services that can be administered outside of the hospital, Part B will cover most of the expenses. Home visits from a medical professional, testing services and some equipment costs can be covered, as can the use of an ambulance in emergencies.
Medicare Part B premiums, deductible and coinsurance
The standard monthly premium in 2023 for Medicare Part B enrollees will lower by $5.20, the first decrease in a decade. The Centers for Medicare & Medicaid Services (CMS) credits the decrease in part to lower than expected spending on the controversial Alzheimer’s drug Aduhelm, which caused last year’s spike to create a contingency margin for the novel drug. That, along with other Part B items and services resulted in much larger reserves which can be used to limit future premium increases
Enrollees will pay $164.90 next year instead of the current $170.10. The amount beneficiaries pay for the Part B monthly premium is based on their reported income on tax filings. The standard rate applies to individual enrollees who have an income of up to $97,000 per year and couples with an annual income no more than $194,000. Around 7 percent of Americans with Part B coverage pay income-related adjustment amounts. See below for the 2023 high-income beneficiaries monthly rates.
New for 2023, the option will be available to certain Medicare beneficiaries who are 36 months post kidney transplant and are thus no longer eligible for full Medicare coverage, to purchase continued Part B coverage of immunosuppressive drugs. The standard premium for this additional coverage is $97.10 in 2023 with higher premiums based on income thresholds. See below for the 2023 high-income beneficiaries monthly rates.
Full Medicare Part B coverage premiums and Immunosuppressive Drug Coverage for high-income beneficiaries
For individuals with incomes over $97,000 but not greater than $123,000 and couples with incomes of more than $194,000 but not exceeding $246,000 will pay an adjusted amount of $65.90 for a full Part B monthly premium of $230.80. The optional Immunosuppressive Drug Coverage premiums will be $161.80 per month.
For individuals with incomes over $123,000 but not greater than $153,000 and couples with incomes of more than $246,000 but not exceeding $306,000 will pay an adjusted amount of $164.80 for a full Part B monthly premium of $329.70. The optional Immunosuppressive Drug Coverage premiums will be $258.90 per month.
For individuals with incomes over $153,000 but not greater than $183,000 and couples with incomes of more than $306,000 but not exceeding $366,000 will pay an adjusted amount of $263.70 for a full Part B monthly premium of $428.60. The optional Immunosuppressive Drug Coverage premiums will be $356.00 per month.
For individuals with incomes over $183,000 but not greater than $500,000 and couples with incomes of more than $366,000 but not exceeding $750,000 will pay an adjusted amount of $362.60 for a full Part B monthly premium of $527.50. The optional Immunosuppressive Drug Coverage premiums will be $453.10 per month.
For individuals with incomes over $500,000 and couples with incomes of more than $750,000, will pay an adjusted amount of $395.60 for a full Part B monthly premium of $560.50. The optional Immunosuppressive Drug Coverage premiums will be $485.50 per month.