Read to see if you can expect to save money this year

The cost of Medicare can fluctuate every year. To get your 2023 budget ready, you will want to know how much your Medicare expenses will change. Some prices have gone up, others have gone down, and there might be potentially massive savings on the cost of insulin. Read on to find out how Medicare is changing in the new year.

Part A

We take an in-depth look at the changes to Part A in 2023 here, including information for the 1% of Medicare beneficiaries who need to pay a premium on Part A. The main highlights you want to know are as follows:

• The Part A Deductible is now $1,600 (an increase of $44)

• The copayment for hospital days 61-90 is now $400 per day

• For days 21-100 in a Skilled Nursing Facility (SNF), you will be responsible for $200 each day 

Part B

The Part B Deductible is now $226, a decrease of $7 from the previous year. With Medicare Supplement Plan G, this deductible is your only out-of-pocket cost.

For many people, Medicare Part B typically costs $164.90 per month, a decrease of $5.20 from 2022. You might be required to pay even more based on your MAGI (modified adjusted gross income).

If your MAGI is above a certain amount (as per your IRS tax return from 2 years ago), you’ll have to pay the standard premium and an income-related monthly adjustment amount (IRMAA).

The table below shows the cost of Medicare Part B, depending on your income:

Medicare Part B IRMAA Chart 2023

Part D

Similar to Part B, your MAGI can influence how much your monthly premium is on Part D. The table below will help you determine your Medicare Part D premium based on your income bracket.

Medicare Part D Premiums 2023

Many of the most significant changes to Part D Prescription Drug plans will result from government legislation in 2022.

Inflation Reduction Act

Insulin is one of the most expensive life-saving medications available. But starting on January 1, the cost of a month's supply of insulin will be capped at $35.

Also, starting in 2023, there will be better access to vaccines that the Advisory Council on Immunization Practices recommends. That means no more out-of-pocket costs for the shingles vaccine through your Part D prescription drug plan.

As a result of the Inflation Reduction Act, 2023 will be the last year you have to worry about the Donut Hole on Part D. The Donut Hole is a coverage phase of your prescription drug plan that charges you more out-of-pocket for your medication.

Conclusion

Medicare premiums and deductibles might change every year. If you are wondering how these changes might affect your budget, our team of experts is ready to help. Fair Square Medicare is here for you.