Every year there are slight changes to Medicare usually in pricing structure but sometimes in policy. 2023 may have some additional changes in store.
There are four parts to Medicare: A, ,B, C & D. A & B is original Medicare. Part A is your hospital in insurance and Part B is your outpatient insurance. Most people do not have to pay for Part A, however there is a premium for Part B.
From 2021 to 2022 there was a very large monthly premium increase for Part B. This was largely due to the coverage of an Alzheimer’s drug. In 2023, it’s actually expected that premiums for Medicare part B will decrease. Exact numbers will be release in the fall.
There are other potential changes coming to Original Medicare. For part A & B, your first opportunity to enroll is during your IEP. This a seven month window surrounding your 65th birthday. You have the three months before, the month of and the three months thereafter to enroll. However, coverage start dates vary depending upon when you enroll.
Based on when you enroll in this initial window, there could be a lapse in overage. In 2023, this new proposed rule would aim to solve this potential lapse.
Additionally, in the past if you missed your IEP you would have to wait until the Medicare GEP. This is every year from Jan. 1-March 31. Then your coverage wouldn’t begin until July 1! This proposed change could fix this in two ways:
- Those who miss their IEP may be eligible for a SEP if they can prove their company (for employer sponsored group health insurance) misled them or did not provide clear information regarding their insurance.
- Those enrolling in Medicare during the GEP would have active insurance the 1st of the month after enrolling as opposed to July.
This could also affect the Medicare Part B late enrollment penalties which you should strive to avoid.
Medicare Part C
Medicare Part C and Part D are optional parts of Medicare. They are offered by private carriers. Part C (MA) actually replaces Original Medicare entirely. There are many different plans to choose from with different benefits and associated costs. You can expect plans to increase slightly, but the amount depends upon the plan that you choose.
Medicare Part D 2023 Limits
Medicare Part D is offered by private carriers but regulated by the federal government. Carriers can offer better benefits if they so choose, but they must at least adhere to the guidelines as set by the federal government.
- Deductible: $505 (increase from $480 in 2022)
- Initial coverage limit: $4,660 (increase from $4,430 in 2022)
- Out of pocket threshold: $7,400 (increase from $7,050 in 2022)
- Total covered Part D spending at the out-of-pocket expense threshold for beneficiaries not eligible for the coverage gap discount program: $10,516.25 (increase from $10,012.50 in 2022)
Jesse Smedley is the Principal Broker for iHealthBrokers and the founder, president, and CEO of Smedley Insurance Group, Inc. and iHealthBrokers.com. Since the inception of SIG in 2007, Jesse has been dedicated to helping people save money on their health insurance by providing them with resources to educate themselves on all their health insurance options, both under age 65 and Medicare beneficiaries. He is featured in many publications as well as writes regularly for expert columns regarding health insurance and Medicare.