Client Question: Are Medicare Premiums Really Going Down?

September 29, 2022

A client reached out this week to confirm what seemed like news that was too good to be true (especially in a year when it seems all prices are going up). Are Medicare premiums for Part B really going down in 2023? We’re happy to report the answer is yes! Read on to learn more.

We wrote about Medicare in a recent post (you can revisit it here). As you can tell, it’s a rather complex system made up of several parts.

One of those parts is referred to as Part B. Part B covers physician services, outpatient hospital services, durable medical equipment, and a few other items. Every year, Medicare Part B premiums, deductibles, and coinsurance amounts are determined by the Social Security Act. These premiums are paid directly to Medicare (usually via a deduction from social security benefits (if active) or via check/ACH).

There is a standard premium for Part B – as well as a schedule of increases based on income (known and Income Related Medicare Adjustment Amount, or IRMAA. This topic was outlined in our last Medicare post, linked above).

In most years, the Part B premium amounts steadily increase. However, this is not the case for 2023! As discussed in detail in this article, the standard Part B premium is declining from $170.10 per person in 2022 to $164.90 per person in 2023. Not a hugely material decrease – but a decrease all the same!

The higher premiums (based on income) also declined – and the income brackets for when these adjustments take hold increased slightly. Win win on the IRMAA front as well.

Overall, these changes for 2023 should be a slight benefit to those on Medicare. Finally, some good news!

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