Proposed Changes to Medicare Part B in 2023: What You Need to Know
You have probably heard that substantial changes might be coming to Medicare Part B in 2023.
Thank you for reading this post, don't forget to subscribe!Let’s Start with a Quick Review of Medicare Part B Basics
To review, Medicare Part B covers your medical and physician costs.
Unlike Medicare Part A, Part B isn’t free. You pay a monthly premium for it, and that premium can change – and it will change again in 2023.
In 2022 for example, the Medicare Part B premium increased $21.60 per month over 2021. That was the largest increase in the history of Medicare.
Why did Medicare increase the Part B amount so significantly in 2022?
Why did Medicare add that amount to what you pay? It was because Medicare wanted to increase the amount of money that was being held in the Medicare trust fund to be sure there will be enough residual funding in it to cover the costs of Aduhelm, an expensive new Alzheimer’s medication that Medicare subscribers could potentially need.
Medicare Part B in 2023
In 2023, the size of that Part B premium is going to be going down.
Why? Because Medicare has already set aside enough money to offer coverage for members who could be prescribed Aduhelm. Medicare overestimated in costs attributable to the inclusion of Aduhelm in their 2022 estimates resulting in a increase that in Part B premiums than were required.
So What Will Medicare Part B Cost in 2023?
In 2023, the standard Part B premium amount is $164.90 per month. Your premium will be higher if your taxable income from 2 years ago (2021) is higher than the thresholds outlined below:
| Individual Filing | Joint Filing | 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 |
Take Out Your Calendar: Changes in Medicare Enrollment Periods Could Be Coming in 2023 Too
Other significant Medicare Part B changes in 2023 could affect changes in the Medicare Effective dates and new Special Enrollment Period.
As has been the case in the past, everyone who enrolls in Medicare will still get a seven-month initial enrollment period (IEP) when they turn 65 – the period when they enroll in Medicare Part A and Part B. Yet in 2023, the effective date of your Medicare Coverage are changing.
Prior to 2023, if you applied for Medicare A and B after the month of your birthday, there would be a delay in your Medicare starting of up to 2 to 3 months. In 2023, your coverage will start the month after you apply, meaning there is minimal delay in your coverage starting.
But Here’s a Pothole to Avoid . . .
Remember that if you fail to enroll during the IEP for Medicare Part B, you will generally have to wait until the next Medicare Part B General Enrollment Period to apply for Medicare, which will take place between January 1st and March 31st of the following year.
Prior to 2023, if you didn’t apply until then, your Medicare Part B coverage would not start until July 1st of that year. That means you will have a period of time when you are not receiving Part B coverage. Plus, you will pay lifetime penalties. Those penalties can add up since they are calculated based on the number of preceding months when you were not covered.
In 2023, you the coverage will start the month after you apply in the January to March General Enrollment Period. While you’ll still have a gap if you miss your IEP, you will no longer need to wait until July for coverage to start.
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