A Comprehensive Overview of Medicare Costs for 2023
Determining what your healthcare spending\’s for 2023 will be is just one of the many things which you have to do at the dawn of the new year. This can sometimes be confusing and difficult to determine, and therefore we want to assist you by providing a comprehensive overview of the Medicare cost changes for 2023.
Medicare costs will vary depending on whether you choose to get additional coverage or stay with just original Medicare.
Medicare Part A Costs for 2023
Medicare Part A refers to hospital insurance which includes inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care.
For most people Medicare Part A is usually free, this is because they paid taxes while working. When you have worked for more than 10 years (or 40 quarters) within the U.S., then your Medicare Part A will have been paid via your payroll taxes and is therefore free.
If you do not qualify for a premium-free Medicare Part A, then you will have to pay approximately $506 per month. Prorated premiums of approximately $278 per month are available to individuals who have worked between 30-40 quarters.
If you do not buy Part A as soon as you become eligible, you might be held responsible to pay a penalty fee when you do decide to enroll.
The difference in the monthly deductible from 2022 to 2023, is $44. The Part A deductible for 2023 will therefore be $1,600 per month.
With Medicare Part A, hospital stays will be free for the first 60 days of each benefit period. Thereafter, you will be charged $400 per day up until 90 days, and $800 per day after 90 days. Skilled Nursing Facilities will be free for the first 20 days, and thereafter you will pay $100 per day up until 100 days.
Medicare Part B Costs for 2023
Medicare Part B refers to outpatient medical coverage. This includes the payment of medically necessary services which are performed on an outpatient basis and are needed to diagnose and treat medical conditions. Furthermore, surgeries, lab work, and preventative services are also covered under Part B.
The standard Medicare Part B monthly premium is $164.90 and is paid by most people. That said, this monthly premium could be adjusted based on your modified adjusted household gross income (MAGI). Social Security will determine the exact amount that you have to pay for Part B in 2023.
You will be responsible for the standard premium if you enrolled for the first time for Medicare Part B in 2023, if you don’t get Social Security benefits, and if you are directly billed for your Part B premiums. You will also only be responsible for the standard premium if you have both Medicare and Medicaid, and your premiums are paid by Medicaid.
Your modified adjusted gross income is influenced by all money earned through wages, interests, capital gains, and dividends from investments. If filed with a spouse, your premiums will be based on the married income. The table below demonstrates what you will pay based on your income.
The 2023 Part B total premiums for high-income beneficiaries
Copyright: Medicare.gov
| Full Part B Coverage | |||
| Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Income-Related Monthly Adjustment Amount | Total Monthly
Premium Amount |
| Less than or equal to $97,000 | Less than or equal to $194,000 | $0.00 | $164.90 |
| Greater than $97,000 and less than or equal to $123,000 | Greater than $194,000 and less than or equal to $246,000 | $65.90 | $230.80 |
| Greater than $123,000 and less than or equal to $153,000 | Greater than $246,000 and less than or equal to $306,000 | $164.80 | $329.70 |
| Greater than $153,000 and less than or equal to $183,000 | Greater than $306,000 and less than or equal to $366,000 | $263.70 | $428.60 |
| Greater than $183,000 and less than $500,000 | Greater than $366,000 and less than $750,000 | $362.60 | $527.50 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $395.60 | $560.50 |
The 2023 Part B total premiums for high-income beneficiaries
Medicare Part D Costs for 2023
Medicare Part D refers to the coverage of prescription drugs. The coverage of Part D is available to you in two separate ways. It is either available as a stand-alone Prescription Drug Plan (PDP), or it is available as part of a Medicare Advantage plan (which is also referred to as Medicare Part C).
Medicare costs for Part D will, just like Part B, vary based on income. Medicare Part D plans differ and therefore the premium thereof will differ as well. Within most states the starting price of plans are between $10-$15, and the premium of the plan is known as the base premium for Medicare Part D.
The amount that most people have to pay per month for the monthly premium of Medicare Part D, is the published base premium. However, people with higher income pay more for Medicare Part D (as can be seen in the table below).
Copyright: Medicare.gov
| Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Income-related monthly adjustment amount |
| Less than or equal to $97,000 | Less than or equal to $194,000 | $0.00 |
| Greater than $97,000 and less than or equal to $123,000 | Greater than $194,000 and less than or equal to $246,000 | 12.20 |
| Greater than $123,000 and less than or equal to $153,000 | Greater than $246,000 and less than or equal to $306,000 | 31.50 |
| Greater than $153,000 and less than or equal to $183,000 | Greater than $306,000 and less than or equal to $366,000 | 50.70 |
| Greater than $183,000 and less than $500,000 | Greater than $366,000 and less than $750,000 | 70.00 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | 76.40 |
Find detailed explanations of Medicare Part D through the Modern Medicare Agency.
Final take
In the past couple of years, healthcare has become the focus point for many. However, trying to understand the best option for them, and their budget, can be confusing and disheartening.
If you’re looking for an independent Medicare broker near you, contact us at the Modern Medicare Agency.
