The Centers for Medicare & Medicaid services has announced the new Medicare cost sharing amounts for 2022.
With inflation rising, the percentage increases are higher than in past years. We discuss the numbers below and how they affect your premiums, deductibles, coinsurance, and out-of-pocket exposure.
These changes affect all insurance plans – both new and old. All Medicare plans must abide by any new cost-sharing rules no matter when they were purchased.
Medicare Premiums, Deductibles & Coinsurance 2020-2023
| Medicare Feature | 2020 Amount | 2021 Amount | 2022 Amount | 2023 Amount | Change From 2022 |
|---|---|---|---|---|---|
| Medicare Part B Premiums (For Most) | $144.60 | $148.50 | $170.10 | $164.90 | -$5.20 |
| Part A Deductible (Impatient Hospital) | $1,408 | $1,484 | $1,556 | $1,600 | +44 |
| Part B Deductible (Physician's Services) | $198 | $203 | $233 | $226 | -$7 |
| Hospital Coinsurance Days 61-90 | $352 | $371 | $389 | $400 | +$11 |
| Hospital Coinsurance Days 91-150 | $704 | $742 | $778 | $800 | +$22 |
| Skilled Nursing Facility Coinsurance | $176 | $185.50 | $194.50 | $200 | +$5.50 |
| High Deductible Plans F, G & J | $2,340 | $2,370 | $2,490 | 2,700 | +$210 |
Medicare Part B Premiums & IRMAA Surcharges
There is some good news. Medicare Part B premiums are decreasing in 2023. Most will see their premiums decrease to $164.90 per month. This is $5.20 less than in 2022.
It’s worth noting the Social Security cost-of-living adjustment is 8.7% in 2023! Your SS check will increase by that percentage on a monthly basis. This is the highest increase in 40 years.
Higher earners will still experience increases based on their income, however. Limits for individual and joint filers have been increased which may lessen the burden for some, however.
(By rule, those who fall under the “hold-harmless” provision must have their Part B premiums offset by increases in Social Security payments.)
The Income Related Monthly Adjustment Amount (IRMAA) requires individuals making more than $97,000 – and couples filing jointly making over $194,000 – to pay more for Medicare Part B coverage.
| Individual Filers | Joint Filers | Married - File Separately | Your 2023 Monthly Premiums |
|---|---|---|---|
| AGI Less Than Or Equal To $97,000 | AGI Less Than Or Equal To $194,000 | AGI Less Than Or Equal To $97,000 | $164.90 |
| AGI Greater Than $97,000 And Less Than Or Equal To $123,000 | AGI Greater Than $194,000 And Less Than or Equal To $246,000 | N/A | $230.80 |
| AGI Greater Than $123,000 And Less Than Or Equal To $153,000 | AGI Greater Than $246,000 And Less Than or Equal To $306,000 | N/A | $329.70 |
| AGI Greater Than $153,000 And Less Than Or Equal To $183,000 | AGI Greater Than $306,000 And Less Than or Equal To $366,000 | N/A | $428.60 |
| AGI Greater Than $183,000 And Less Than Or Equal To $500,000 | AGI Greater Than $366,000 And Less Than or Equal To $750,000 | AGI Greater Than $97,000 And Less Than or Equal To $403,000 | $527.50 |
| AGI Greater Than $500,000 | AGI Greater Than $750,000 | AGI Greater Than $403,000 | $560.50 |
IRMAA premiums are determined by your income from 2 years ago. There are five tiers to the IRMAA payment schedule as seen above. What you made in 2021 determines your 2023 Part B premiums. There is an IRMAA surcharge on Medicare Part D drug premiums as well.
Medicare Part A & Part B Deductible Amounts
The Part B deductible is important for many consumers. The Medicare Part B deductible for 2023 is $226 – a $7 decrease from 2022. This amount affects owners of Medicare supplements that do not cover the Part B deductible.
Medigap Plans G & N are two popular policies that do not cover the Part B Deductible. We see a lot of enrollment in these two as their monthly rates tend to be more stable. Plans C & F do cover the Part B deductible, but are only available for purchase if your Medicare Part B began before January 1, 2020.
The Part A deductible (Inpatient Hospital Care) is increasing to $1,600 – an increase of $44. Most Medicare supplements cover the Part A deductible. This amount is slightly less than last year. The most popular policies like Plans F, G, and N cover this gap.
One reason Medicare Supplements increase in price is due to increases in cost-sharing. Another reason is the higher utilization of healthcare services due to the pandemic. With some cost-sharing decreasing, perhaps Medicare Supplement premium increases will be less as well.
What is the 2023 High Deductible Plan F, G & J Amount?
Some consumers prefer High Deductible Medicare supplement plans due to their very low premiums. Consumers also like the known out-of-pocket exposure. The deductible for all High Deductible policies will increase to $2,700 in 2023. That’s a $210 increase from 2022. This deductible has been increasing more significantly in the last three years.
Plans F, G, and J are the only policies with a high deductible option. Plan J hasn’t been available for many years, but some still own it. Plan F is only available to those who were Medicare-eligible before 2020.
The only plan available for those who are new to Medicare in 2020 and beyond is High Deductible Plan G. In many states, HD Plan G will offer the lowest monthly premiums of any Medicare supplement for sale.
Medicare Supplement Plans K and L Changes
Plans K and L were introduced in 2010 as part of the Medicare Modernization Act. We don’t see a lot of interest in these two policies. They have larger out-of-pocket exposure, but higher premiums than similar (or even more comprehensive) Supplements.
In terms of cost-sharing, they somewhat resemble Medicare Advantage coverage. Plans K and L do not have network restrictions, however. You can see any doctor or hospital accepting Supplements – which most do.
The increases with these two plans are in line with what we’ve seen in prior years. The out-of-pocket will be $6,940 for Plan K and $3,470 for Plan L. This is also a noteworthy increase from 2022 to 2023. When you compare benefits and premiums with Plan K & L, it’s wise to consider Plan N… or a High Deductible Supplement. There can be more value with those Supplements or a few others.
Contact Us For Assistance
As illustrated above, there are some significant changes to Medicare premiums and cost-sharing amounts. Those who are on a fixed income may need to reevaluate their choices for supplemental insurance. It might be necessary to consider a low-cost Medicare Advantage plan or Medigap policy with higher out-of-pocket exposure.
We are a full-service, independent insurance agency that offers Medicare insurance all across the country. We license directly with all of our carriers. We are a great resource for education, comparisons, and direct enrollment.
We offer Medicare supplements, Medicare Advantage, and Part D prescription drug coverage. Contact us today to compare your most affordable options.