Medicare 2023: This Is How Much Each Plan Will Cost You

Medicare recipients will get a financial boost in 2023 after the Centers for Medicare and Medicaid Services announced lower premiums across several plans.

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Last week, the CMS said premium costs for Medicare Part B will drop in 2023 vs. 2022 — the first such decline in a decade. The standard monthly premium for Medicare Part B enrollees will be $164.90 in 2023, down from $170.10 in 2022. The annual deductible for all Medicare Part B beneficiaries will fall to $226 in 2023 from $233 in 2022.

Those reductions follow significant increases in 2022, Kiplinger reported. For 2022, the Part B premium rose by $21.60 from 2021, while the deductible climbed $30 in 2022. One reason the premium and deductible will go down in 2023 is because of reductions in the price and coverage of the Biogen Alzheimer’s drug Aduhelm.

Costs for other Medicare plans will also go down in 2023, depending on your coverage and other factors. Most retirees get Part A coverage free because they paid Medicare taxes when they were working, The Motley Fool reported. Medicare Part A covers expenses associated with inpatient care, nursing facilities, hospice care and certain home healthcare costs.

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If you or your spouse worked for at least 40 quarters (the equivalent of 10 years) and paid into the Medicare system, you don’t have to pay for Part A. If you don’t qualify for free Medicare Part A, then you might have to pay up to $506 per month in premiums in 2023, according to The Motley Fool.

If you signed up for a Medicare Advantage plan through a private insurer, you can expect to pay an average of $18 a month in 2023, according to the CMS. That’s down from $19.52 in 2022. Medicare Advantage covers services provided in other Medicare plans as well as costs not covered by regular Medicare, such as eyewear, hearing aids, preventive and comprehensive dental benefits and certain over-the-counter items.

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The other Medicare plan, Part D, covers various prescription drugs. Its premium will also go down next year, the CMS said. The average basic monthly premium for standard Part D coverage is projected to be $31.50 in 2023 vs. $32.08 in 2022. Meanwhile, thanks to provisions included in the Inflation Reduction Act, Part D out-of-pocket expenses should decline significantly in coming years.

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About the Author

Vance Cariaga is a London-based writer, editor and journalist who previously held staff positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal and Business North Carolina magazine. He holds a B.A. in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting earned awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. In addition to journalism, he has worked in banking, accounting and restaurant management. A native of North Carolina who also writes fiction, Vance’s short story, “Saint Christopher,” placed second in the 2019 Writer’s Digest Short Short Story Competition. Two of his short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. His debut novel, Voodoo Hideaway, was published in 2021 by Atmosphere Press.
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