Original Medicare costs are made up of Part A (hospital) and Part B (doctor) monthly premiums as well as deductibles, copays, coinsurance, and excess charges that you may have to pay when receiving medical services. You may be surprised to learn that Medicare is decreasing some costs for 2023.
Medicare Part B Premium and Deductible 2023
The Medicare Part B premium and deductible decreased in 2023. See chart below.
| Medicare Part B Premium 2022 vs 2023 | ||
|---|---|---|
| 2022 | 2023 | |
| Part B Premium* | $170.10 | $164.90 |
| Part B Deductible | $233 | $226 |
Check out our 2022’s Medicare Part A and B costs for complete details on last year’s cost
*Monthly Part B premium can be higher for those with higher incomes.
Medicare Part B Premium cost for higher-income enrollees
The majority of Medicare beneficiaries with Medicare Part B will pay $164.90 per month in 2023. Those who fall into higher-income brackets, however, will pay more. This is called the Income Related Monthly Adjustment Amounts or IRMAA. Those in the top bracket could pay up to $395 extra a month due to IRMAA, for a total of $560.50 a month. While this may seem high, it has actually gone down $17.80 per month from 2022, with a savings of $213.60 per year!
In addition, the income threshold for increased Medicare Part B premiums is now much higher. The first IRMAA bracket moved from $91,000 in 2022 to $97,000 in 2023.
Medicare Part B monthly premium for Single and Married filed jointly tax filing:
| Beneficiaries who file individual tax returns with income | Beneficiaries who file joint tax returns with income | Income-based extra monthly payment | 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 $123,00 | 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 |
Medicare Part B monthly premium for Married and live in the house but filed separately on tax return:
| Married filed separately Medicare Part B beneficiaries | Income-based extra monthly payment | Total monthly premium amount |
|---|---|---|
| Less than or equal to $97,000 | $0.00 | $164.90 |
| Greater than $91,000 and less than $409,000 | $362.60 | $527.50 |
| Greater than or equal to $409,000 | $395.50 | $560.50 |
*New* Medicare Part B Immunosuppressive Drugs
Starting in 2023, if you were only on Medicare due to End Stage Renal Disease or you are 36 months post kidney transplant and you don’t have other health insurance, you can maintain Part B for Immunosuppressive drug coverage only for $97.10 per month (or more if your income is higher). To learn more, check out the Medicare PDF.
2023 Medicare Part A Premium
The majority of seniors 65 and older** who are Medicare-eligible will not pay the Part A premium. You qualify for Part A premium-free if you or your spouse has worked and paid taxes or 10 years. Those who haven’t satisfied the part A work requirements will have to pay the Part A premium. See below for details.
| Worked*** and paid taxes for 40 quarters (10 years) | Worked*** and paid taxes 30 – 39 quarters | Worked*** and paid taxes less than 30 quarters |
|---|---|---|
| $0 | $278 | $506 |
**Medicare Part A is always premium-free for those who are under 65 and qualify for Medicare because of a disability.
***You and your spouse worked.
2023 Medicare Part A Coinsurance and Deductible
This is where you get into the higher healthcare costs. While Part B has decreased in costs, Part A hospital costs have increased.
| Medicare Part A Premium/Deductible/Coinsurance 2022 and 2023 | ||
|---|---|---|
| Medicare Part A Benefits | 2022 | 2023 |
| Inpatient hospital deductible | $1,556 | $1,600 |
| Hospital coinsurance per day cost for Days: 61st-90th | $389 per day | $400 per day |
| Hospital coinsurance per day for lifetime reserve days**** | $778 per day | $800 per day |
| Skilled Nursing Facility coinsurance | $194.50 per day | $200 per day |
****Medicare Part A lifetime reserve days max out at 60 days. When these days are used, you’ll pay 100% for each additional day in the hospital.
Original Medicare costs can be covered by Medigap plans
As you can see, Medical expenses even with Original Medicare (Part A and Part B) can cost you a lot of money if you got seriously ill. You can purchase additional insurance to address these high costs. Medigap plans can pay some or all of the coinsurance fees listed above.
All Medigap plans extend your lifetime hospital reserve days an extra 365 days! With varying benefit coverage from the different Medigap plans, it’s important to compare and select the right Medigap plan. Most of our clients select Medigap Plan G as it offers great coverage at a fair price.
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Next Steps
After reviewing Medicare’s new 2023 costs and fees, if you are interested in a Medigap plan to limit your financial exposure in the event of serious illness please call Senior65.com at 800-930-7956.
Remember we can NEVER charge you a fee for enrollment or a quote.