What will be the medicare part b premium for 2022

CNN  — 

Medicare beneficiaries will see their Part B premiums decrease in 2023, the first time in more than a decade that the tab will be lower than the year before, the Centers for Medicare and Medicaid Services announced Tuesday.

The standard monthly premiums will be $164.90 in 2023, a decrease of $5.20 from 2022.The reduction, which was signaled earlier this year by Health and Human Services Secretary Xavier Becerra, comes after a large spike in 2022 premiums. Medicare beneficiaries had to contend with a 14.5% increase in Part B premiums for 2022, which raised the monthly payments for those in the lowest income bracket to $170.10, up from $148.50 in 2021.

President Joe Biden highlighted the drop in premiums at an afternoon event in the Rose Garden on Tuesday, using the announcement to tout Democrats as the party that will protect Social Security and Medicare.

That message – targeted toward the key demographic of older voters – comes six weeks before the midterm elections.

Biden criticized the plan laid out last week by House Minority Leader Kevin McCarthy and Republicans, calling their agenda a “thin set of policy rules, with little or no detail.” The President also slammed Republican Sens. Ron Johnson of Wisconsin and Rick Scott of Florida for their plans that suggest Social Security and Medicare should be discretionary spending rather than mandatory programs.

“What do you think they’re gonna do when the House Budget Committee started talking about cost of Medicare and Social Security and why we can’t afford it?” Biden asked the audience in the garden.

Relief after big premium increase

A key driver of the 2022 hike was a projected jump in spending due to a costly new drug for Alzheimer’s disease, Aduhelm. However, since then, Aduhelm’s manufacturer has cut the price and CMS limited coverage of the drug. The agency said it would factor the lower-than-forecast spending into the 2023 premium.

Also, spending was lower than projected on other Part B items and services, which resulted in much larger reserves in the Part B trust fund, allowing the agency to limit future premium increases.

The annual deductible for Medicare Part B beneficiaries will be $226 next year, a decrease of $7 from 2022.

Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment and certain other medical and health services not covered by Medicare Part A.

One of the benefits of the Inflation Reduction Act, which Congress passed in August, will also kick in next year for Medicare beneficiaries. Starting July 1, cost-sharing will be capped at $35 for a one-month supply of covered insulin. Also, people with Medicare who take insulin through a pump won’t have to pay a deductible. This benefit will be available to people with pumps supplied through the durable medical equipment benefit under Part B.

The Medicare Part B premiums comes as seniors are also expecting a larger-than-usual increase in their Social Security payments. The annual cost of living adjustment, which will be announced next month, is being fueled by high inflation.

For 2022, seniors received a 5.9% increase, the largest in decades, but it was quickly overrun by soaring price increases.

The Senior Citizens League projects that the 2023 increase could be 8.7%, which would bump up the average retiree benefit by $144.10 to $1,656.

Medicare Part B Premiums Decline in 2023

 September 2022

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The Centers for Medicare & Medicaid Services (CMS) has announced that the standard monthly Part B premium will be $164.90 in 2023, a decrease of $5.20 from $170.10 in 2022. This follows an increase of $21.60 in the 2022 premium, largely due to the cost of a new Alzheimer’s drug. Changes in the drug’s use and price, along with other Part B items and services, led to larger financial services that resulted in the lowered premium for next year.

Certain beneficiaries will continue to pay higher premiums based on their modified adjusted gross income. The monthly Part B premiums that include income-related adjustments for 2023 will range from $230.80 to $560.50, depending on the extent to which an individual beneficiary’s modified adjusted gross income exceeds $97,000 (or $194,000 for a married couple). The highest rate applies to beneficiaries whose incomes exceed $500,000 (or $750,000 for a married couple). CMS estimates that about 7 percent of Medicare beneficiaries pay the income-adjusted premiums.

Beneficiaries in Medicare Part D prescription drug coverage plans pay premiums that vary from plan to plan. Part D beneficiaries whose modified adjusted gross income exceeds the same income thresholds that apply to Part B premiums also pay a monthly adjustment amount. In 2023, the adjustment amount ranges from $12.20 to $76.40.

The Railroad Retirement Board withholds Part B premiums, Part B income-related adjustments and Part D income-related adjustments from benefit payments it processes. The agency can also withhold Part C and D premiums from benefit payments if an individual submits a request to his or her Part C or D insurance plan. 

The following tables show the income-related Part B premium adjustments for 2023. The Social Security Administration (SSA) is responsible for all income-related monthly adjustment amount determinations. To make the determinations, SSA uses the most recent tax return information available from the Internal Revenue Service. For 2023, that will usually be the beneficiary’s 2021 tax return information. If that information is not available, SSA will use information from the 2020 tax return.

Railroad retirement and social security Medicare beneficiaries affected by the 2023 Part B and D income-related premiums will receive a notice from SSA by the end of the year. The notice will include an explanation of the circumstances when a beneficiary may request a new determination. Persons who have questions or would like to request a new determination should contact SSA after receiving their notice.

Additional information about Medicare coverage, including specific benefits and deductibles, can be found at Medicare.gov.