Despite rapidly rising inflation in 2022, Medicare Part B premiums will be lower in 2023.
The standard monthly premium for Medicare Part B enrollees will be $164.90 for 2023, a decrease of $5.20 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.
According to the Centers for Medicare and Medicaid Services, the 2022 Medicare Part B premiums 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.
2023 Medicare Part B Premiums
Federal retirees who happen to fall under Income Related Monthly Adjustment Amount (IRMAA) will pay higher premiums based on their annual income. 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|
For additional details about IRMAA and how it can impact your Medicare Part B premiums, see:
- Why Your Monthly Medicare Part B Premium Can Range From $170.10 to $578.30
- What Is Medicare IRMAA? How to Avoid an Expensive Surprise
Medicare Open Enrollment for 2023 will begin on October 15, 2022 and ends on December 7, 2022. Medicare eligible individuals can compare 2023 coverage options between Original Medicare, and Medicare Advantage, and Part D prescription drug plans during the open enrollment period.
What Does Medicare Part B Cover?
Medicare Part B covers two types of services:
- Medically necessary services: Services or supplies that are needed to diagnose or treat your medical condition and that meet accepted standards of medical practice.
- Preventive services: Health care to prevent illness (like the flu) or detect it at an early stage, when treatment is most likely to work best.