Seniors will get a much needed break in their Medicare Part B premiums in 2023.
The Part B monthly premium will be $164.90 next year, a decline of $5.20 or about 3%, according to the Federal Centers for Medicare and Medicaid Services. Medicare Part B covers numerous items, including doctor visits and outpatient services like lab tests and diagnostic screening.
The lower cost will save Medicare enrollees about $62 a year. Federal officials announced the cut earlier this week.
The drop comes a year after the government announced 2022 Medicare Part B premiums would rise 15% from 2021 levels, the largest hike in Medicare’s history.
The reason for the big jump was a contingency fund added to cover projected spending on Aduhelm, a new, pricey drug aimed at treating Alzheimer’s disease.
Use of the drug was later restricted to Medicare patients in clinical trials. Biogen, the company that developed the treatment, eventually slashed sales efforts in the U.S., further limiting its reach, according to The Motley Fool.
Biogen also reduced Aduhelm’s cost.
All of that meant the government didn’t need the extra cash from 2022′s premium hike. A report recommended passing excess reserves back to enrollees through a premium decrease for this year.
Officials previously announced that average premiums for Medicare prescription drug coverage would also decline next year.
The government detailed other 2023 Medicare costs:
- The annual deductible for Medicare Part B beneficiaries will also drop in 2023. It will decline $7 to $226, a decline of about 3%.
- The annual deductible for Medicare Part A inpatient hospital care will rise $44 to $1,600. That’s a jump of about 2.8%. Along with inpatient hospital care, Medicare Part A also covers nursing facility care, hospice, inpatient rehabilitation and some other services.
- Almost no Medicare beneficiaries pay a premium for Part A coverage, but the few that do will see some increases. Full details are available on the Centers for Medicare and Medicaid Services website.
Medicare’s open enrollment period — when individuals can sign up for new coverage — runs from Oct. 15 through Dec. 7.
By David Lasman – “Ask Medicare Dave” | President – Senior Healthcare Team
Inevitably there are changes to Medicare every year, so it’s important that you read this next and learn what’s in store for 2023: Comprehensive Medicare FAQ Guide for 2023
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