Will Part B Premiums Increase In 2023?
Are you, like most seniors, wondering whether your Medicare Part B premium will increase again in 2023? This question has been on many minds after the significant increase in cost from 2021 to 2022. The 2022 increase was the highest to date, leaving many Medicare beneficiaries wondering how their Part B premiums will change in the future.
Medicare Part B is the medical insurance part of an Original Medicare policy covering clinical research, ambulance services, durable medical equipment, mental health and some outpatient prescription drugs. Since most seniors pay out of pocket for Medicare Part B, these increases have had a significant impact. While there’s no intention of lowering the Part B premium halfway through 2022, there have been motions to offset the increase in 2023. Arguably, this offset is meant to recompense seniors for the 2022 increase.
In the meantime, you need to know how the Part B premium changes affect your current payment. So, let’s look at what you’ll pay based on your annual tax return.
The Medicare Part B premium increase
From 2021 to 2022, the Medicare Part B premium increased from $148 to $170 per month. Some current enrollees paid less than $170 for their premium. But most saw an increase in their usual premium in 2022.
The Part B premium is based on your income. Starting with the flat rate of $170, the Social Security Administration (SSA) determines the adjustment of an individual’s Part B premium relative to income. Below are tables showing the amount you can expect to pay based on your tax filings and income.
1. Seniors filing individually
| Income | Part B premium |
| Up to $91,000 | $170 |
| Between $91,000 and $114,000 | $238 |
| Between $114,000 and $142,000 | $340 |
| Between $142,000 and $170,000 | $442 |
| Between $170,000 and $500,000 | $544 |
| Greater than $500,000 | $578 |
2. Seniors filing jointly
| Income | Part B premium |
| Up to $182,000 | $170 |
| Between $182,00 and $228,000 | $238 |
| Between $228,00 and $284,000 | $340 |
| Between $284,000 and $340,000 | $442 |
| Between $340,000 and $750,000 | $544 |
| Greater than $750,000 | $578 |
3. Seniors married, but filing separately
| Income | Part B premium |
| Up to $91,000 | $170 |
| Between $91,000 and $409,000 | $544 |
| Greater than $409,000 | $578 |
Why did CMS increase Medicare Part B premiums in 2022?
The Centers for Medicare Services (CMS) increased the Part B premium to fund a new drug to treat Alzheimer’s called ADUHELM™. But in a recent report, CMS officials admitted they overestimated the cost to support ADUHELM™. This leaves the agency with extra revenue from the Medicare Part B premium increase.
Of course, CMS won’t be refunding the Part B premium increase during 2022. But they do plan on restoring the cost savings to Medicare beneficiaries in 2023 with recalculated Part B premiums this fall.
The significant increase in the 2022 Medicare Part B premium left many seniors struggling to afford health insurance. In response, the Secretary of the U.S. Department of Health and Human Services (HHS) Xavier Becerra asked The Centers for Medicare Services to reassess their reasons for the increase.
Will Part B premiums increase again in 2023?
While the premium increase has been challenging for many seniors, rest assured that the cost will not increase again in 2023. In fact, you can expect a decrease in the Part B premium starting on Jan. 1, 2023.
Keep an eye out for the announcement of next year’s (decreased!) premiums. If you have questions about navigating Medicare Part B changes, call us at 877.255.6273.
image credit: shutterstock/Worawee Meepian
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