Medicare costs have changed in 2023! Here is what you should know.
Costs for Medicare Part A
Many people are automatically enrolled in Medicare and will qualify for $0 premiums for Medicare Part A. If you or your spouse worked and paid Medicare taxes for at least 10 years, you will also likely qualify for premium-free Part A. People who worked between 10 and 7.5 years may pay $278 per month in premiums, and people who worked fewer than 7.5 years (30 calendar quarters) may owe $506 per month in 2023.
Your costs for the Part A deductible are $1,600 for each benefit period. A benefit period counts from your date of admittance until you have not received inpatient care in a hospital for 60 days or inpatient care in a skilled nursing facility for 100 days.
Coinsurance for Part A includes a daily cost for inpatient care. As a hospital inpatient, you pay $0 in coinsurance for the first 60 days, $400 per day for days 61-90 in the benefit period, and $800 for days 90-150 until you have used up your 60 lifetime reserve days. Once you use up your lifetime reserve days, you owe all costs for the remaining days in that benefit period. Costs are similar in a skilled nursing facility, where coinsurance is $0 for the first 20 days, $200 per day for days 21-100, and all costs beyond day 100.
You can expect to pay 20% of the Medicare-approved amount for durable medical equipment in home health care, a copayment of $5 for prescription drugs and symptom control in hospice care, and 5% of the Medicare-approved amount for inpatient respite care.
What You Pay for Part B
Your 2023 Part B premiums will cost $164.90 per month. If you have a higher income (above $97,000 individual or $194,000 joint), you may pay a higher premium cost. Your Part B deductible is $226 for the year.
You can expect to pay 20% of the Medicare-approved cost for covered services. This includes durable medical equipment, most doctor services, and doctor or diagnostic visits. You may have to pay additional copayments to outpatient facilities if you receive your care there, and daily coinsurance if you are partially hospitalized for mental health care.
Medicare Part D Expenses
Your costs for Part D will vary by plan and by pharmacy. Just as with Part B premiums, you will pay more monthly for your coverage if you make a higher income.
Help Paying Your Medicare Costs in 2023
It’s important to note that if you have become eligible for Medicare in 2023, you should sign up for your Part B coverage as soon as you are eligible. Part B has a lifetime late enrollment penalty. Likewise, Part D has a penalty if you do not enroll right away and go without prescription drug coverage for more than 63 days before deciding to sign up for a prescription drug plan.
For more assistance in paying for Medicare, look to the state and Medicare programs that are available to people with low income and limited resources. Medicaid, Extra Help, Medicare Savings Programs and more can help you save on your 2023 Medicare costs.
