Every year “The Medicare and You” handbook is printed and mailed out to all beneficiaries right before October 1st, together with Medicare cards. The Handbook has all the information about news and changes in the Medicare program, as well as eligibility requirements and enrollment periods, and it helps guide beneficiaries through the Medicare Annual Enrollment period. Maybe the most important part of it is the list of Medicare costs, premiums, and deductibles for each Medicare part. For 2023, it will be seen a decrease in Part B premium and deductible. Other parts of Medicare regarding their costs have increased.
In this blog, we will breakdown Original Medicare costs together with Part D costs.
Medicare Part A Costs
Medicare Part A is one-half of Original Medicare, and it is basically hospital insurance. It covers the costs of inpatient hospital care, hospice care, and nursing facilities. Most beneficiaries do not have to pay Part A premiums because they paid Medicare taxes throughout their career. Qualifications for free Part A are that you or your spouse have worked for at least 40 quarters (10 years) or that you have been receiving Social Security benefits. But in cases where you do not qualify for free Medicare Part A, your premium might be up to $506 per month.
The Part A inpatient deductible for 2023 will be $1600 (in 2022 it was $1556). For a hospital stay daily coinsurance for days 61-90 will be $400 for 2023 (in 2022 it was $389). For the Skilled nursing facilities in 2023, costs will be $0 copayment per day for days 1-20, and $200 copayment for days 21-100.
Medicare Part B Costs
Medicare Part B is known as medical insurance. It covers outpatient care, preventive services (vaccines), and durable medical equipment you might need. The standard monthly premium for part B in 2023 will be $164.90 (in 2022 it was $170.10). The annual deductible will be $226 in 2023 (it was $233 in 2022). This decrease in costs came because last year was the largest increase in Part B costs regarding Medicare`s coverage for Aduhelm, a new medication to treat Alzheimer`s disease, but the projected needed money for it was not spent.
Medicare Part D Costs
Medicare Part D is medication coverage. It covers a variety of prescription drugs that people using the Medicare program take. The monthly premium for Medicare Part D in 2023 will be $31.50 (in 2022 it was $32.08). In 2023 Part D deductible will be $505 (it was $480 in 2022), and the initial coverage limit will be $4660 (it was $4430 in 2022).
A donut hole occurs in Part D as a coverage gap, and it means that there is a temporary limit on what the plan will cover for drugs. It happens when you and your selected drug plan spend a certain amount for covered medications. In 2023, the Donut hole begins with reaching the Part D coverage limit of $4660 and it is active until you spend $7440 out-of-pocket – then you enter Catastrophic coverage. Part D beneficiaries will receive a 75% “Donut Hole Discount” on the total cost of their brand-name drugs purchased while in the Donut Hole. The discount includes a 70% discount paid by the brand-name drug manufacturer and a 5% discount paid by your Medicare Part D plan.
If you have trouble paying Medicare costs, you should consider applying for Medicare Savings Program. For more information about it, check our Medicare Savings Program blog.