In 2023, the standard monthly Medicare Part B premium, which covers medical and outpatient care, is $164.90, a monthly decrease of $5.20 from $170.10, for people with annual incomes of $97,000 or less in 2021. At the same time that your Medicare Part B premium is decreasing, your Social Security increase is increasing a 8.7 percent, providing an average additional $146 a month in benefits.
Social Security benefits in 2023 will be up an average of $1,827 for a single retiree.
In 2023, people whose modified adjusted gross income from two years ago as reported on their federal tax return–about seven percent of the Medicare population–pay a Medicare Part B premium of:
- $230.80 a month, if their income is above $97,000 and no more than $123,000.
- $329.70 a month, if their income is above $123,000 and no more than $153,000
- $428.60 a month, if their income is above $153,000 and no more than $183,000
- $527.50 a month, if their income is above $183,000 and less than $500,000
- $560.50 a month, if their income is $500,000 or more
For couples with combined incomes of $366,000 or less two years ago, filing a joint tax return, the premium amount doubles. Couples with annual incomes above $366,000 and less than $750,000 each pay a $527.50 monthly premium. And, couples with annual incomes of $750,000 and above each pay a $560.50 monthly premium. Visit this CMS web site for your Part B premium amount if you are filing separate returns.
Medicare Part B annual deductible: $226, a decrease of $7 from the annual deductible of $233 in 2022.
For more than four decades, the Medicare Part B premium (medical insurance) was the same for everyone regardless of income, geography or health status, a quarter of the cost of Part B services. (Medicare Part A, hospital insurance, is premium-free if you have contributed into Social Security for at least 40 quarters.) In 2007, wealthier people with Medicare began paying higher premiums.
Here are 2023: Medicare Part A costs:
- There is no Medicare Part A premium if you or your spouse have at least 40 quarters of coverage.
- The Medicare Part A premium, if you or a spouse has at least 30 quarters of coverage, is $278 a month; if you don’t have at least 30 quarters, the premium is $506 a month.
- The Medicare Part A inpatient hospital deductible is $1,600, in 2023 an increase of $44 from 2022, and coinsurance for hospitalizations after day 60 is $400 a day in a benefit period; coinsurance for lifetime reserve days is $800 a day.
- The Medicare Part A daily coinsurance for skilled nursing facility stays after day 20 is $200, an increase of $5.50 from $194.50 in 2022.
Extra Help paying your Medicare premiums and out-of-pocket costs: People with low incomes and assets have help paying these costs through the Medicare Savings Program. You should apply through your Medicaid office, if you think you might be eligible.
People with incomes up to 135 percent of the federal poverty level, (the exact amount will be released in 2023) are eligible for help paying their premiums through Medicaid or a Medicare Savings Program.
In 2023, for full low-income subsidy (LIS) benefits through the Qualified Medicare Beneficiary (QMB) program, your assets cannot be higher than $9,090 ($13,630 if married). For partial LIS benefits, your assets cannot be higher than $15,160 ($30,240 if married).
That said, if you notify the Social Security Administration (SSA) that you plan to use some of your assets for burial expenses, for full LIS benefits, your assets can be as high as $10,590 ($16,630 if married). For partial LIS benefits, your assets can be as high as $16,660 ($33,240 if married).
Here’s more from Just Care:
- Social Security benefits rise nearly 9 percent in 2023
- Don’t judge a Medicare Advantage plan by its stars
- Six reasons you need a primary care doctor in this age of specialization
- How to prepare for your doctor’s visit
- How to prepare for your hospital stay
