Good News for Medicare Recipients: Premiums Down by Up to 3% in 2023

Most Medicare recipients won’t see premium increase in 2023. Medicare Part B premiums down by 3% and private Parts C & D expected to drop too.

Medicare recipients, 65 years and older and some with disabilities under 65, will experience a decrease in their Part B premium in 2023 after it increased in 2022. Medicare, a federal health insurance, has four parts: A, B, C, and D.

Medicare Part A covers inpatient hospital, nursing facility, hospice, and home health care. Most 65 and older don’t pay Part A premium as it’s funded by career-long Medicare taxes. However, there may still be costs, such as the rising annual deductible for inpatient hospital stays from $1,566 in 2022 to $1,600 in 2023 according to Centers for Medicare and Medicaid Services’ fact sheet published on September 19, 2022.

Part B covers outpatient care, medical equipment, preventive services. Most have both Parts A and B with a standard monthly premium of $164.90 in 2023 (down $5.20 from 2022) for those earning $97,000 or less ($194,000 for couples), according to CMS. The annual Part B deductible is decreasing from $233 In 2022 to $226 in 2023. The 2022 premium increase was for Alzheimer’s drug, Adhuhelm, but was found to be higher than needed, leading to the 2023 premium decrease.

Part C, or Medicare Advantage plans, are offered by private companies approved by Medicare and their premiums can change annually. The Department of Health and Human Services has projected an average monthly premium of $18 for 2023, which is a decrease from $19.52 in 2022.

Part D is an optional drug benefit offered through private companies, with premiums varying based on the chosen plan. CMS projected an average decrease of 1.8% from $32.08 in 2022 to $31.50 in 2023, with some higher earners paying more.