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Medicare Premiums and Deductibles: What Is Changing for 2023

In 2023, we can expect the prices of several areas of Medicare coverage to increase. Parts A, B, C, and D will all cost more. Due to the large change in inflation, specific adjustments will be made to help individuals cover the rising cost of care. Deductions will be based on an individual’s income bracket.

Key takeaways:

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Medicare costs typically change annually. They consider the economy and any healthcare events that may impact patients or recipients. Often, these include premiums, deductibles, and copayments. If you are a Medicare recipient, staying on top of your benefits is crucial to plan for your healthcare needs to ensure access to the appropriate services. Open Enrollment for original Medicare is from October 15th through December 7th each year.

Medicare Part A premiums and deductibles for 2023

Medicare Part A covers inpatient hospital care, skilled nursing facility (SNF) care, home health care, and hospice care. While it is recommended to include a Part A plan as part of your health insurance, keep in mind that not all Medicare beneficiaries have a Part A premium as it is not required to participate in every plan.

Medicare Part A premiums for 2023

With inpatient hospital care, you are covered for up to 90 days for each benefit period and have 60 lifetime reserve days. In addition, you are covered for skilled nursing, room, board, and some other services, such as tube feeding, but you must have been an inpatient at a hospital within 30 days of admission and require therapy or nursing services. Home care covers up to 100 days of daily care and unlimited intermittent care. However, it still requires three consecutive days of inpatient care at the hospital within the last 14 days of obtaining home health.

Medicare Part A deductible for 2023

Medicare Part A increased by $44 from 2022 to 2023. An increase in inpatient hospital deductible stays will also occur in 2023, depending on the length of stay. Coinsurance for stays from the 61st-90th day of a hospital stay rose from $389 per day to $400, and lifetime reserve days changed from $778 to $800. Furthermore, the cost for skilled nursing facility coinsurance rose to $5.50 for days 21 through 100.

Medicare Part A income adjustments

There are no new income adjustments for Medicare Part A beneficiaries for 2023. If you also have Medicare Part B or D, continue reading for more information on income adjustment requirements for those plans.

Medicare Part B premiums and deductibles

Medicare Part B coverage includes:

  • Physician services
  • Outpatient hospital services
  • Some home healthcare
  • Durable medical equipment (like wheelchairs or walkers)

This can also include preventive services, therapies, laboratory testing, ambulance services, and prescription drugs. The Social Security Act determines the rates for Medicare Part B.

Medicare Part B premiums for 2023

In 2023, the monthly Part B premium dropped a bit from $170.10 to $164.90. Also, Part B has been extended to those who have had a kidney transplant beyond 36 months. High-income beneficiaries will see many different premiums for Part B based on their income. However, it will still be a lower cost than in 2022.

Medicare Part B deductible for 2023

The annual deductible for beneficiaries with Medicare Part B decreased by $7 to $226. Much like your premium plan costs, the deductibles are determined according to your reported income for the previous year.

Medicare Part B adjustments based on income

For example, if your gross income for 2021 exceeded a certain threshold, your Medicare Part B premium and income-related adjustments were as follows:

Individual tax returnJoint tax returnMarried, filing separatelyYou pay in 2023
Less than $97,000Less than $194,000Less than $97,000$164.90
More than $97,000 up to $123,000More than $194,000 up to $246,000Not applicable$230.80
More than $123,000 up to $153,000More than $246,000 up to $306,000Not applicable$329.70
More than $153,000 up to $183,000More than $306,000 up to $366,000Not applicable$428.60
More than $183,000 up to $500,000More than $366,000 up to $750,000Between $97,000 and $403,000$527.50
More than $500,000More than $750,000More than $403,000$560.50

Medicare Part C premiums and deductibles

Medicare Advantage Plan, or Part C, is an HMO or PPO health plan that supplements your current insurance. These are offered by private companies that have received approval. The plan covers your hospital and medical insurance coverage, or Part A and Part B, and may provide extra coverage. Additional coverage can include vision, hearing, dental, prescription drugs, and more.

Medicare Part C premiums for 2023

In 2023, The average premium for Medicare Part C decreased by $1.52 from 2022 pricing to around $18 a month. As a Part C beneficiary, you can have your Part C premiums deducted from your Social Security benefits.

Medicare Part C deductible for 2023

Advantage plans cap out-of-pocket costs for Part A and B services, excluding the cost of prescription drugs. In 2023, the cap increased to $8,300 from $7,550 in 2022.

Medicare Part C adjustments based on income

The cost of your Medicare Part C depends on which Medicare Advantage plan you're enrolled in. It's important to note that eligibility for Part C plans is contingent on being enrolled in a Medicare Part A or Part B plan.

Medicare Part D premiums and deductible

Part D coverage covers your prescription drugs. Part D plans must include more than one drug from a formulary in each category. Categories include antidepressants, antipsychotics, and other kinds of drugs.

Medicare Part D premiums for 2023

In 2023, the prescription drug coverage increased from $480 to $505. As a result, premiums are expected to dip to around $31.50 monthly — down from $32.08.

Medicare Part D deductible for 2023

The out-of-pocket threshold for members with Part D benefits also increased from $7,050 to $7,400.The out-of-pocket threshold for members with Part D benefits also increased from $7,050 to $7,400.

Medicare Part D adjustments based on income

If you fall into higher income brackets, you have monthly adjustment amounts for Medicare Part D. This means you’ll pay the adjustment amount in addition to your premium. Some recipients pay premiums directly to the plan, while others have it deducted from their Social Security checks. See the chart below for your estimated drug plan of monthly premiums based on your income.

Individual tax returnJoint tax returnMarried, filing sepratelyYou pay in 2023
Less than $97,000Less than $194,000Less than $97,000Your plan premium
More than $97,000 up to $123,000More than $194,000 up to $246,000Not applicable$12.20 + your plan premium
More than $123,000 up to $153,000More than $246,000 up to $306,000Not applicable$31.50 + your plan premium
More than $153,000 up to $183,000More than $306,000 up to $366,000Not applicable$50.70 + your plan
More than $183,000 up to $500,000More than $366,000 up to $750,000Between $97,000 and $403,000$70.00 + your plan premium
More than $500,000More than $750,000More than $403,000$76.40 + your plan premium

Annual Enrollment

Medicare Annual Enrollment begins October 15th and runs through December 7th each year. During Annual Enrollment, participants can compare different Medicare options, such as prescription medication plans and Medicare Advantage plans. Medicare-eligible adults may also qualify for Medicare Savings Programs (MSP) or financial assistance. These can help cover premiums, deductibles, coinsurance, and copayment costs. In addition, we expect to see more options for telehealth. Many large plans, such as Aetna, Humana, and UnitedHealthcare, plan to expand to several more states with expanded coverage options.

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