Fratello Law

Medicare’s Reduced Premiums in 2023 – What You Should Know with Open Enrollment NOW

Medicare is an essential federal health program for individuals 65 and older, as well as for younger individuals with disabilities. Medicare Part B helps cover routine medical care, home healthcare, medical equipment, and more. Despite the significant rise in inflation in recent years, Medicare Part B premiums will decrease for the first time in a decade in 2023.

If you are considering taking advantage of these reduced premiums and applying for Medicare, open enrollment is here and will end on December 7th, so do not delay!

Why Are Medicare Part B Premiums Decreasing in 2023?

Since Medicare Part B premiums saw a significant increase in 2022, the reductions of premiums in 2023 are a welcome announcement. Beginning in January 2023, Medicare Part B premiums will be $164.90, a decrease of $5.20 monthly. In 2022, the premiums skyrocketed partly because the Centers for Medicaid and Medicare Services (CMS) overestimated the cost of Aduhelm, a drug to treat Alzheimer’s disease. Fortunately, CMS spent less than they expected on the drug, allowing premiums to drop from $170.10 to $164.90.

Additionally, Medicare recipients can also expect a lower deductible in 2023. The deductible for Medicare Part B will be $226, seven dollars lower than the Part B deductible in 2022. Since Part B covers both preventive and medically necessary care, it is many seniors’ primary means of receiving healthcare. These changes in deductibles and premiums can help make Medicare Part B coverage more affordable and accessible for those who need it.
While those enrolled in Medicare will not see a change in their premiums until January 2023, it is essential to act quickly to take advantage of this decrease in price. Open enrollment for Medicare began on October 15, 2022, and closes on December 7, 2022.