Each year, the Centers for Medicare and Medicaid Services (CMS) updates cost-sharing requirements for the various parts of Medicare. On September 27, 2022, CMS released the updated figures for 2023. Here’s what beneficiaries and agents/brokers need to know.

Medicare Part A premiums, deductibles and coinsurance have increased

99% of Medicare beneficiaries pay no part A premium, due to them having paid FICA taxes for over 40 quarters. For those who have not met that requirement, they will see modest increases in their monthly premium payments. See the table below.

Regardless of what they pay (or not!) in premium, all Part A beneficiaries are subject to cost-sharing for any inpatient care they receive – whether that care occurs in a hospital or a skilled nursing facility. Cost sharing for Part A is based on benefit periods. The table below details what beneficiaries can expect to pay for each type of service.

Decrease in Part B premium, IRMAA brackets adjusted, and a new option for beneficiaries who have received a kidney transplant

Good news for beneficiaries – the base premium for Part B will decrease from $170.10 per month to $164.90 per month. The change is a result of lower-than-projected spending on new drugs and Part B services. This decrease is also in line with a recent CMS recommendation that encourages excess trust fund reserves to be shared with Part B beneficiaries.

Since 2007, a beneficiary’s monthly part B premium has been dependent on income and tax filing status. Income-related monthly adjustment amounts impact about 7% of enrollees. Total premiums for a variety of income brackets and filing statuses are shown in the tables below. Note that these brackets have shifted some, as a result of inflationary pressures.

Beginning in 2023, some Medicare beneficiaries who are 36 months post kidney transplant, and are no longer eligible for full Medicare coverage, can choose to have Part B cover their immunosuppressive drugs. This coverage comes with a reduced premium, but that premium is still based on income and tax filing status. A variety of income brackets and tax filing statuses are shown below.

Part D IRMAA brackets have also changed

While Part D plan premiums are determined by private insurers, high-income earners may also be subject to an income-related monthly adjustment amount. This adjustment is deducted from an enrollee’s Social Security benefit. Figures for a variety of income brackets and tax filing status are displayed below.

What it means for agents, brokers and beneficiaries

While the decrease in Part B premium is both appreciated and expected, increases in costs for other parts of Medicare – especially services covered by Part A – may negate any potential savings. Beneficiaries should explore their financial situation with the support of a licensed insurance professional, and collaborate to develop a Medicare benefits package that best fits their needs.