Medicare Part B Premiums Will Drop For 2023



The Centers for Medicare and Medicaid Services on September 27, 2022 announced that the standard monthly Medicare Part B premium, which covers outpatient services such as doctor’s visits, will decrease by $5.20 for 2023.


The premium will fall to $164.90 for next year from $170.10 in 2022. The annual deductible for all Medicare Part B beneficiaries is $226 in 2023, a decrease of $7 from the annual deductible of $233 in 2022.


The 2022 premium included a contingency margin to cover projected Part B spending for a new drug, Aduhelm. Lower-than-projected spending on both Aduhelm and other Part B items and services resulted in much larger reserves in the Part B account of the Supplementary Medical Insurance (SMI) Trust Fund, which can be used to limit future Part B premium increases. The decrease in the 2023 Part B premium aligns with the CMS recommendation in a May 2022 report that excess SMI reserves be passed along to people with Medicare Part B coverage.


Beginning in 2023, certain Medicare enrollees who are 36 months post kidney transplant, and therefore are no longer eligible for full Medicare coverage, can elect to continue Part B coverage of immunosuppressive drugs by paying a premium. For 2023, the immunosuppressive drug premium is $97.10.


Medicare Part B Income-Related Monthly Adjustment Amounts

Since 2007, a beneficiary’s Part B monthly premium is based on his or her income. These income-related monthly adjustment amounts affect roughly 7 percent of people with Medicare Part B. The 2023 Part B total premiums for high-income beneficiaries with full Part B coverage are shown in the following table:

Beneficiaries who file individual tax returns with modified adjusted gross income:

Beneficiaries who file joint tax returns with modified adjusted gross income:

Income-Related Monthly Adjustment Amount

Total Monthly

Premium Amount

Less than or equal to $97,000

Less than or equal to $194,000

$0.00

$164.90

Greater than $97,000 and less than or equal to $123,000

Greater than $194,000 and less than or equal to $246,000

$65.90

$230.80

Greater than $123,000 and less than or equal to $153,000

Greater than $246,000 and less than or equal to $306,000

$164.80

$329.70

Greater than $153,000 and less than or equal to $183,000

Greater than $306,000 and less than or equal to $366,000

$263.70

$428.60

Greater than $183,000 and less than $500,000

Greater than $366,000 and less than $750,000

$362.60

$527.50

Greater than or equal to $500,000

Greater than or equal to $750,000

$395.60

$560.50

Medicare Part D Income-Related Monthly Adjustment Amounts

Since 2011, higher income beneficiaries’ Part D monthly premiums are based on income. These income-related monthly adjustment amounts affect roughly 8 percent of people with Medicare Part D. These individuals will pay the income-related monthly adjustment amount in addition to their Part D premium. Part D premiums vary from plan to plan and roughly two-thirds of beneficiaries pay premiums directly to the plan, while the remaining beneficiaries have their premiums deducted from their Social Security benefit checks. Regardless of how a beneficiary pays their Part D premium, the Part D income-related monthly adjustment amounts are deducted from Social Security benefit checks or paid directly to Medicare. The 2023 Part D income-related monthly adjustment amounts for high-income beneficiaries are shown in the following table:


Beneficiaries who file individual tax returns with modified adjusted gross income:

Beneficiaries who file joint tax returns with modified adjusted gross income:

Income-related monthly adjustment amount

Less than or equal to $97,000

Less than or equal to $194,000

$0.00

Greater than $97,000 and less than or equal to $123,000

Greater than $194,000 and less than or equal to $246,000

$12.20

Greater than $123,000 and less than or equal to $153,000

Greater than $246,000 and less than or equal to $306,000

$31.50

Greater than $153,000 and less than or equal to $183,000

Greater than $306,000 and less than or equal to $366,000

$50.70

Greater than $183,000 and less than $500,000

Greater than $366,000 and less than $750,000

$70.00

Greater than or equal to $500,000

Greater than or equal to $750,000

$76.40




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