The Centers for Medicare & Medicaid Services (CMS) released on Sept 27 the 2023 Medicare Parts A and B premiums, deductibles, and coinsurance amounts.
The Medicare open enrollment period started on October 15, 2022 and runs through December 7, 2022. The open season is an opportunity for Medicare enrollees to compare coverage options like Original Medicare (Parts A and Part B) and Medicare Advantage, and choose health and prescription drug plans for 2023.
The standard monthly premium for Medicare Part B enrollees will be $164.90 for 2023, a decrease of $5.20 from $170.10 in 2022. The annual deductible for all Medicare Part B beneficiaries is $226 in 2023, a decrease of $7 from the annual deductible of $233 in 2022.
The Medicare Part B premium is usually deducted from a recipient’s monthly Social Security benefits. The premiums have increased over the last several years — usually larger than the annual Social Security cost-of-living adjustment (COLA). It is predicted that the COLA for 2023 will be 8.7%. The final 2023 COLA figure will be released in mid-October.
Since 2007, a beneficiary’s Part B monthly premium is based on his or her income. These income-related monthly adjustment amounts affect roughly 7 percent of people with Medicare Part B. The 2023 Part B total premiums for high-income beneficiaries with full Part B coverage are shown in the following table.
For our current clients, we'll be updating future cash flow and tax projections modeling to reflect these new rates starting next year.