Medicare Open Enrollment Is Here - How Are Costs Changing for 2023
Medicare's Open Enrollment Period — which runs from October 15 through December 7 — is your annual opportunity to switch your current Medicare health and prescription drug plans to ones that better suit your needs. Just in time for Open Enrollment, 2023 Medicare premiums, deductibles, and other costs have been announced, and surprisingly, some of these costs are lower than they were last year.
Start by reviewing any materials your plan has sent you. Look at the coverage offered, the costs, and the network of providers, which may be different than last year. Maybe your health has changed, or you anticipate needing medical care, or new or pricier prescription drugs. If your current plan doesn't meet your health-care needs or fit your budget, you can make changes. But if you're satisfied with what you currently have, you don't need to do anything. The coverage you have will continue.
During Open Enrollment, you can:
Any changes made during Open Enrollment are effective as of January 1, 2023.
Most people with Medicare who receive Social Security benefits will pay the standard monthly Part B premium of $164.90 in 2023. This premium is $5.20 lower than it was in 2022 due to lower-than-projected spending for a new drug, Aduhelm, and other Part B items and services.1
People with higher incomes may pay more than the standard premium. If your modified adjusted gross income (MAGI) as reported on your federal income tax return from two years ago (2021) is above a certain amount, you'll pay the standard premium amount and an Income-Related Monthly Adjustment Amount (IRMAA), which is an extra charge added to your premium, as shown in the following table.
You filed an You filed a joint You filed an income Total monthly *Total monthly individual income income tax return tax return as premium in premium in 2023
tax return with MAGI that was:
with MAGI that was:
married filing separately with MAGI that was:
immunosuppressive drug coverage only is:
$97,000 or less
$194,000 or less
Above $97,000 up to $123,000
Above $194,000 up to $246,000
Above $123,000 up to $153,000
Above $246,000 up to $306,000
Above $153,000 up to $183,000
Above $306,000 up to $366,000
Above $183,000 and less than
Above $366,000 and less than
Above $97,000 and less than $403,000
$500,000 and above
$750,000 and above
$403,000 and above
People with higher incomes may also pay a higher premium for a Medicare Part D prescription drug plan, because an IRMAA will be added to the Part D basic premium based on the same income limits in the table above. Part D premiums vary, but the average basic monthly premium for 2023 is projected to be $31.50 (down from $32.08 in 2022).
People with Medicare Part B must also satisfy an annual deductible before Original Medicare starts to pay. For 2023, this deductible is $226 (down from $233 in 2022).
*This premium applies to a new benefit that extends coverage for immunosuppressive drugs for people who qualify for Medicare coverage due to end-stage renal disease. Prior to 2023, Medicare coverage, including immunosuppressive drug coverage, ended 36 months after a successful kidney transplant.
Beginning January 1, 2023, Medicare will offer a new benefit that will help continue to pay for immunosuppressive drugs beyond 36 months for people who don't have other health coverage. It does not cover other items or services. Rates shown apply to people who file individual or joint tax returns.
Premiums for beneficiaries filing as married filing separately are different.
1) The Centers for Medicare & Medicaid Services, 2022
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This article was prepared by Broadridge.
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