(Previously published in the 2023, issue 1, Retiree Guardian)
Medicare Costs in 2023
By Barbara Wilcox, SHIP Counselor
Good news! Some Medicare costs are actually going down in 2023. These decreases plus the 8.7% Cost of Living Increase (COLA) that we got in our Social Security benefits mean a few more dollars in the bank for us seniors. The decreases are in the Part B premium and deductible and in the Income Related Monthly Adjustment Amount (IRMAA) for those in higher income brackets.
Here is a summary of 2023 amounts, compared to 2022, for the costs encountered most often.
|– 2022 –||– 2023 –|
|Part A Deductible|
(per benefit period of hospitalization)
|Part B Monthly Premium||$170.10||$164.90|
|Part B Annual Deductible||$233.00||$226.00|
Higher Costs for Higher Income
People who are lucky enough to qualify for high income status pay higher premiums for both Part B and Part D (prescription drug coverage). The government looks at your 2021 income tax return to see if you have to pay a higher amount in 2023, and how much you will pay. The amount you would pay has come down from the 2022 amounts. The brackets have also changed so that you can earn more money before you have to start paying IRMAA. Here are the numbers, based on an individual income tax return. Double the income amounts if you are married and filed a joint return.
Part B Premiums Adjusted for Income
|Modified Adjusted Gross Income (2021 tax return)||2023 Part B Premium|
|$97,000 or less||$164.90|
|Above $97,000 and up to $123,000||$230.80|
|Above $123,000 and up to $153,000||$329.70|
|Above $153,000 and up to $183,000||$428.60|
|Above $183,000 and up to $500,000||$527.50|
|Above $500,000 ($750,00 if married & filed joint return)||$560.50|
Part D Income-Related Monthly Adjustment Amount (IRMAA)
Added to premium of your Part D prescription drug plan or Medicare Advantage plan.
|Modified Adjusted Gross 2023 Part D Income (2021 tax return)||2023 Part D Monthly Adjustment|
|$97,000 or less||$0.00|
|Above $97,000 and up to $123,000||$12.20|
|Above $123,000 and up to $153,000||$31.50|
|Above $153,000 and up to $183,000||$50.70|
|Above $183,000 and up to $500,000||$70.00|
|Above $500,000 ($750,00 if married & filed joint return)||$76.40|
Q. How do I know how much I’m paying in 2023?
A. The monthly premium amounts, including any IRMAA you may owe due to high income, were shown on the annual statement that you received from Social Security in late November or early December. These amounts are withheld from your monthly Social Security benefits. If you or your spouse are not drawing Social Security, then you are billed for the amounts you owe.
Categories: Medicare News