Medicare standard Part B premiums will drop by 3% next year, to $164.90

Personal finance

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The 2023 monthly premium for Medicare’s outpatient care coverage will be about 3% lower than it is this year, the government announced Tuesday.

The standard monthly premium for Part B will be $164.90 next year, down $5.20 from $170.10 in 2022, according to the Centers for Medicare & Medicaid Services.

The annual deductible for Part B will be $226 in 2023, a decrease of $7 from $233 in 2022.

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This year’s Part B premium had jumped more than expected from 2021 due to the Medicare program’s projected spending on Aduhelm, a drug that battles Alzheimer’s disease. Lower-than-expected spending on both Aduhelm and other Part B items and services resulted in larger financial reserves for Part B, allowing the program to reduce next year’s cost to beneficiaries.

Meanwhile, the deductible for Medicare Part A (hospital coverage) per benefit period (which generally starts when you are admitted to the hospital) will be $1,600 in 2023, up $44 from this year’s $1,556. That applies to the first 60 days of inpatient care.

For the 61st through 90th day, the coinsurance will be $400 per day, up from $389 this year. For lifetime reserve days, the charge will be $800 per day (up from $778 in 2022).

Additionally, so-called income-related adjustment amounts, or IRMAAs, will kick in for single beneficiaries at modified adjusted gross income of more than $97,000, up from $91,000 this year. For married beneficiaries filing a joint tax return, the extra monthly charge will apply if income is above $194,000, up from $182,000 this year.

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