Medicare Changes in 2023
Medicare Part D monthly price cap at $35 for one-month supply of Part D covered insulin prescription
Expansion of non-medical services through SSBCI and VBID (Medicare Advantage plans).
Cost of Medicare Part A increases while Part B and Part D costs both decrease.
Following several Medicare changes, 2023 offers enrollees new coverages and benefits as part of their healthcare. These services, announced by the Centers for Medicare and Medicaid Services (CMS), are meant to promote healthy aging while responding to the ever-evolving needs of older Americans.
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Medicare Changes 2023: What's New for You?
$35 Insulin on All Part D Plans
Under the Inflation Reduction Act, passed into law in August 2022, your Medicare drug plan cannot charge more than $35 for a one-month supply of each Part D- covered insulin, nor can insulin be subject to the plan’s drug deductible if it has one.
Expansion of Non-Medical Services within Medicare Advantage
2023 saw an expansion of non-medical services offered by Medicare Advantage plans through Special Supplemental Benefits for the Chronically Ill (SSBCI) and Value Based Insurance Designs (VBID). These plan and benefit designs allow Medicare Advantage sponsors to offer benefits such as healthy grocery cards, assistance with rent and utilities, non-medical transportation, safety modifications to homes, and even help paying for pet supplies. These services are intended to promote healthy living environments by addressing social determinants of health (SDOH).
Is the Cost of Medicare Going Down in 2023?
Yes and No – following the latest 2022 Medicare increases, 2023 features lower costs for Part B and Part D, and higher costs for Part A.
How much did Medicare B go down in 2023?
Since it’s the portion most Americans have to pay for each month through a premium (unlike Part A), many people associate Part B with their Medicare costs. It accounts for the out-of-pocket costs you pay for approved equipment, doctor’s visits and other outpatient services.
Premium: Medicare Part B decreased standard premiums to $164.90 per month in 2023. Part B premiums are determined by income, and the highest earners can pay as much $560.50 monthly in 2023.
Deductible: Medicare beneficiaries must reach a deductible of $226 in 2023 before Medicare will pick up its share for Part B services.
Part A increases in 2023
Medicare Part A helps cover inpatient care received in an approved medical setting, as well as some home healthcare. Medicare Part A costs are up in 2023, but if you worked at least 10 years (or 40 quarters), you probably won’t have to pay a premium each month. Here’s a rundown of Medicare Part A costs in 2023:
Premium: If you or your spouse worked between 30 and 40 quarters, your monthly Part A premium is $278 in 2023. Those that worked fewer than 30 quarters will pay $506 monthly.
Deductible: When admitted to a hospital or other facility, Part A will cover your first 60 days of inpatient care after you’ve paid your deductible. In 2023, the deductible is $1,600 per benefit period.
Coinsurance: You’ll pay a daily coinsurance if you need hospitalization for more than 60 days in a benefit period. In 2023, the daily rate is $400 for Days 61 to 90 and $800 per day for lifetime reserve days. If you need extended care services in a skilled nursing facility, Part A will cover your first 20 days. The daily coinsurance rate for Days 21 through 100 is $200 in 2023.
Part D decreases in 2023
Medicare prescription drug plans (Part D) help cover medications. They’re offered by private insurance companies and are priced on a per-plan basis. Like Part B, Part D premiums are affected by income, with the highest earners paying an income-related monthly adjustment amount (IRMAA) of $76.40 per month in 2023 on top of their standard premium cost. If your income is $97,000 or less ($194,000 for returns filed jointly) in 2023, you probably won’t pay an IRMAA for Part D.
Who has the best Medicare plan for 2023?
Finding the Medicare plan that’s best for you means determining your needs and shopping for benefits that will help you stay healthy. The plan that works for a friend or a loved one may not work for you, so it’s important to understand your options and know which questions to ask when it’s time. To help, GoHealth has helpful pages on a range of topics, including:
Are you eligible for cost-saving Medicare subsidies?