Millions of seniors who had to pay high increases in Medicare premiums this year will get a break in 2023 when they see a rare drop in monthly premiums for Medicare Part B.
How much you’ll save
The rate decrease is 3%, which will reduce what most people pay for a variety of outpatient care by $5.20 — to $164.90 a month.
Single Medicare enrollees who earn $97,000 or less are charged the standard premium, while couples who file jointly will pay the standard premium if they earn $194,000 or less.
If you earn above that amount, however, you will have to pay higher premiums. For example, if you are a single taxpayer who earns more than $97,000 but up to $123,000, you will pay $230.80 a month for Part B coverage in 2023, according to the Centers for Medicare & Medicaid Services.
The annual deductible for Part B will decline to $226 in 2023, which is down $7 from the 2022 deductible of $233.
Spending on other Medicare and Medicaid services has also been lower than expected this year. In addition to the rate decrease, the program’s deductible will drop to $226 from $233.
This is good news for seniors who will be required to pay a lower out-of-pocket amount before Medicare coverage kicks in. This amounts to about $84 less in annual out-of-pocket spending for seniors.
Why is the deductible decreasing in 2023?
Last year, consumers faced a $21.60 monthly increase, in part because of the costs of the new controversial Alzheimer’s drug Aduhelm. Since then, Medicare set limits on the drug’s use and the drugmaker has cut the $56,000 price tag in half. That led to Medicare paying less than expected, the Associated Press reported.
These fee cuts come at the same time as seniors receive a