Medicare premiums tend to increase every year but not in 2023! That is because 2022 had an out of the ordinary rate hike that was, quite frankly, unfair.
Blame it on the Alzheimer’s drug Aduhelm, a medication that Medicare expected to cover under its Part B benefit. Biogen, the pharmaceutical company that makes the drug, set a retail rate for the drug at $56,000 per year but later decreased it to $28,000. As more data about the drug became available, the Centers for Medicare and Medicaid Services later decided to only cover the drug for people involved in a clinical trial. All of these changes happened after the Medicare premium rates were already set for 2022. The government had to do the right thing and adjust premium rates for 2023 to make up the difference.
These are the rates you can expect to pay in 2023.
Definitions You Need to Know
Premium = The amount you pay every month to have your health plan, even if you don’t use any services that month. (If you don’t pay your premiums, you will not have access to that coverage.)
Deductible = The amount you have to pay each year before your benefits kick in
Coinsurance = A fixed percentage you have to pay for a service
Copayment = A fixed dollar amount you have to pay for a service
2023 Medicare Part A Costs
Most people get Part premiums for free. This applies to people who have worked 40 quarters (10 years) in Medicare-taxed employment. Likewise, they would not need to pay premiums if their spouses had worked that amount of time. Someone who worked 30 to 39 quarters would pay $278 per month ($3,336 per year). Those who worked < 30 quarters, would pay $506 per month ($6,072 per year).
If you are lucky, you will never need to use Medicare Part A. You would never need to go to the hospital, you would never need a skilled nursing facility, and you would never need hospice care.
You will pay a set amount for each hospital benefit period. In 2023, those costs are as follows:
| Day of Inpatient Hospital Care | Your 2023 Costs |
| Inpatient hospital deductible for days 0-60 | $1,600 per hospital stay |
| Inpatient hospital copayment for days 61-90 | $400 per day |
| Inpatient hospital copayment for days 91+ | $800 per day |
In the event you need to go to a skilled nursing facility (SNF) after your hospital stay, this is what you can expect to pay:
| Day of SNF Care | Your 2023 Costs |
| SNF days 0-20 | $0 |
| SNF days 21-100 | $200 per day |
| SNF days 100+ | You pay all costs out of pocket |
2023 Medicare Part B Costs
If you are on Medicare, whether you are on Original Medicare or a Medicare Advantage plan, you will pay Part B premiums. The only time you won’t is if you qualify for a Medicare Savings Program.
Part B Medicare premiums are not the same for everyone. The cost increases based on your income, and Medicare will assign you to one of six different income brackets based on your taxes from two years ago.
Full Part B Benefits
| Your 2021 Annual Income | Your 2023 Part B Premium Cost |
| < $97,000 (single or married filing separately) < $194,000 (married filing jointly) |
$164.90 per month $1,978.80 per year |
| $97,000 – $123,000 (single) $194,000 – $246,000 (married filing jointly) |
$230.80 per month $2,769.60 per year |
| $123,000 – $153,000 (single) $246,000 – $306,000 (married filing jointly) |
$329.70 per month $3,956.40 per year |
| $153,000 – $183,000 (single) $306,000 – $366,000 (married filing jointly) |
$428.60 per month $5,143.20 per year |
| $97,000 – $403,000 (married filing separately) $183,000 – $500,000 (single) $366,000- $750,000 (married filing jointly) |
$527.50 per month $6,330.00 per year |
| > $403,000 (married filing separately) > $500,000 (single) > $750,000 (married filing jointly) |
$560.50 per month $6,726.00 per year |
Part B Immunosuppressive Drug Coverage Only*
| Your 2021 Annual Income | Your 2023 Part B Premium Cost |
| < $97,000 (single or married filing separately) < $194,000 (married filing jointly) |
$97.10 per month $1,165.20 per year |
| $97,000 – $123,000 (single) $194,000 – $246,000 (married filing jointly) |
$161.80 per month $1,941.60 per year |
| $123,000 – $153,000 (single) $246,000 – $306,000 (married filing jointly) |
$258.90 per month $3,106.80 per year |
| $153,000 – $183,000 (single) $306,000 – $366,000 (married filing jointly) |
$356.00 per month $4,272.00 per year |
| $97,000 – $403,000 (married filing separately) $183,000 – $500,000 (single) $366,000- $750,000 (married filing jointly) |
$453.10 per month $5,437.20 per year |
| > $403,000 (married filing separately) > $500,000 (single) > $750,000 (married filing jointly) |
$485.50 per month $5,826.00 per year |
Most of your health care needs will be met by Medicare Part B. After paying a $226 deductible for the year, your Part B benefits kick in. You will then pay 20% for most services while Medicare pays the remaining 80%. Certain preventive screening services will be free to you — but only if your doctor accepts assignment.
2023 Medicare Part D Costs
Because Part D plans are run by private insurance companies, premiums and deductibles vary based on the plan you choose. However, please know that the federal government set a maximum deductible for Part D plans at $480 in 2022. Your deductible cannot be higher than this amount.
Anyone who signs up for a Part D prescription drug plan will also pay what is known as the Income-Related Monthly Adjustment Amount (IRMAA). This is above and beyond the plan’s monthly premium. Like the Part B costs, what you pay is determined by your income.
Part D IRMAA
| Your 2021 Annual Income | 2023 Part D IRMAA Cost |
| < $97,000 (single or married filing separately) < $194,000 (married filing jointly) |
$0 per month |
| $97,000 – $123,000 (single) $194,000 – $246,000 (married filing jointly) |
$12.20 per month $146.40 per year |
| $123,000 – $153,000 (single) $246,000 – $306,000 (married filing jointly) |
$32.50 per month $390.00 per year |
| $153,000 – $183,000 (single) $306,000 – $366,000 (married filing jointly) |
$50.70 per month $608.40 per year |
| $97,000 – $403,000 (married filing separately) $183,000 – $500,000 (single) $366,000- $750,000 (married filing jointly) |
$70.00 per month $840.00 per year |
| > $403,000 (married filing separately) > $500,000 (single) > $750,000 (married filing jointly) |
$76.40 per month $916.80 per year |
What you pay for each medication will also vary based on your plan. This could be a coinsurance or a copayment. If a drug is not on your plan’s formulary (and your plan refuses to cover it even after you make an appeal), you might have to pay the full cost yourself.
References
2023 Medicare Parts A & B Premiums and Deductibles 2023 Medicare Part D Income-Related Monthly Adjustment Amounts. (2022). Centers for Medicare & Medicaid Services. https://www.cms.gov/newsroom/fact-sheets/2023-medicare-parts-b-premiums-and-deductibles-2023-medicare-part-d-income-related-monthly
CMS Finalizes Medicare Coverage Policy for Monoclonal Antibodies Directed Against Amyloid for the Treatment of Alzheimer’s Disease. (2022). Centers for Medicare & Medicaid Services. https://www.cms.gov/newsroom/press-releases/cms-finalizes-medicare-coverage-policy-monoclonal-antibodies-directed-against-amyloid-treatment
Past Year: 2022
Current Year: 2023
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