All Medicare plans are funded by a combination of federal taxes, the federal government, and premiums paid by Medicare participants. The Centers for Medicare & Medicaid Services (CMS) run the Medicare program. Each year, CMS releases the changes in premiums and deductibles for Medicare Part B.
Medicare premiums can go up or down depending on how much the federal government projects medical costs will be. So as one year comes to a close and another begins, your clients will likely be concerned about a Medicare Part B premium increase in 2023.
What Is Medicare Part B?
While Medicare Part A covers hospitalization costs, Part B covers medically necessary medical services. A medically necessary service is defined as a service that is required to diagnose or treat an illness or injury. The service must also meet acceptable standards for medical care.
Medicare Part B enrollees are covered for such things as:
- Ambulance fees
- Durable medical equipment (DME)
- Inpatient or outpatient mental health services
- Partial hospitalization for mental health
- Certain outpatient prescription drugs
- Clinical research
- Preventative services
Patients who receive services from a physician participating in the Medicare program receive most preventative services at no cost.
Whether a product or service is covered under Medicare largely depends on federal laws. State laws can also mandate which services are covered under a Medicare plan. Healthcare insurance providers also have some latitude in determining if something is medically necessary.
Will There Be a Medicare Part B Premium Increase in 2023?
Brokers and agents can expect Medicare enrollees to be concerned about a Medicare Part B premium increase in 2023 after they experienced a jump in premiums in 2022. The increase was due to projections that seniors would take advantage of coverage for the drug Aduhelm, which has shown to be effective in treating Alzheimer’s disease.
As things turned out, the actual costs involving Aduhelm were far less than predicted. As a result, Medicare enrollees can expect a decrease in their Medicare premiums moving into 2023. The new Medicare part B premium will be $164.90 in 2023, which is $5.20 per month, lower than the previous year.
Furthermore, Medicare enrollees will also have a lower deductible in 2023. The new deductible is $226, which is a decrease of $7.
When Do Changes in Medicare Premiums Take Place?
The decreases in Medicare Part B premiums are a bit of good news insurance brokers and agents can share with their clients. This is an excellent time to remind clients that the open enrollment period runs from October 15 until December 7. If customers want to make changes to their Medicare plans, they must do so within this timeframe.
All those enrolled in Medicare Part B can expect changes in their premiums and deductibles in January 2023.
Enrollees in a Medicare Advantage plan will also be affected by the Part B premium adjustments. They can check with their providers before enrollment to learn about the changes in 2023.
Final Thoughts
The decreases in the Medicare Part B premiums and the lower deductible will be welcome changes for Medicare enrollees, especially for seniors and people living with disabilities who live on fixed incomes.
This news will be a breath of fresh air that agents and brokers can share with clients, especially considering clients may already have concerns about inflation, food shortages, and other economic and societal issues.
For more information on Medicare premium increases or decreases and how they may affect your clients, contact us at American Senior Benefits. Our affiliated experts will be happy to answer any questions you have.
