Updated November, 2022

The Centers for Medicare and Medicaid Services (CMS) has announced the new 2023 Medicare premiums, deductibles, and coinsurance amounts (Federal Register, Sep. 29, 2022).

Many people who have their Part B premiums deducted directly from their Social Security benefits will pay $164.90 or less.  The exact amount varies for different individuals. You should check your Social Security statement or establish and check an online Social Security account for the exact amount if you fit in this category.  The “standard” premium is $164.90, but a provision in the law called the “hold-harmless” provision says that Social Security benefits cannot be lowered if the Part B premiums rise faster than the Social Security COLA (8.7% in 2023). Obviously, that is not applicable in 2023.  Also note that premiums for all income levels have come down (for example, the standard premium of $164.90 is down from $170.10).

For purposes of calculating income limits, Medicare uses “Modified Adjusted Gross Income.”

As noted above, the standard 2023 Medicare Part B premium (single individuals with income of $97,000 or less; joint filers with income of $194,000 or less) is $164.90, down from 2022’s $170.10. The premiums increase with higher incomes.  See below.

Here are the essential Medicare figures:

• Part B standard premium: $170.10
• Part B deductible: $226
• Part A deductible: $1,600 for hospital stays during initial 60 days
• Co-payment for hospital stay days 61-90: $400/day
• Co-payment for hospital stay days 91-150: $800/day
• Patient responsible for ALL Part A costs beyond day 150 (thus the importance of a good Medicare supplemental policy)
• Skilled nursing facility co-payment, days 21-100: $200/day for days 21-100

As directed by 2003 Medicare law and subsequent law, higher income beneficiaries will pay higher Part B premiums. Social Security will base the premiums on reported income (for federal tax purposes) from two years previously (e.g., 2021 income for 2023 Medicare premiums).

The standard premium of $164.90 for Part B increases for those in the following higher income brackets:

• Individuals with annual incomes greater than $97,000 and less than or equal to $123,000 and married couples with annual incomes greater than $194,000 and less than or equal to $246,000 will pay in 2023 a monthly premium of $230.80.
• Individuals with annual incomes greater than $123,000 but less than or equal to $153,000 and married couples with annual incomes greater than $246,000 but less than or equal to $306,000 will pay in 2023 a monthly premium of $329.70.
• Individuals with annual incomes greater than $153,000 but less than or equal to $183,000 and married couples with annual incomes greater than $306,000 but less than or equal to $366,000 will pay in 2023 a monthly premium of $428.60.
• Individuals with annual incomes greater than $183,000 but less than or equal to $500,000 and married couples with annual incomes greater than $366,000 but less than or equal to $750,000 will pay in 2023 a monthly premium of $527.50.
• Individuals with income of $500,000 or greater or married couples with income of $750,000 or greater will pay in 2023 a monthly premium of $560.50.

Part A Premiums

Because most people have 40 or more quarters of covered employment, they do not pay Medicare Part A premiums. Other people may “buy-in” to Medicare Part A – the most commonly affected individuals are those with disabilities who do not have a significant work history. The buy-in rate for Part A for individuals with less than 30 quarters of covered employment is $506 per month. The buy-in rate for Part A for individuals with more than 30 quarters of covered employment but less than 40 quarters of covered employment is $278 per month. The quarters of coverage requirement may be met if the individual is married to a person who meets the coverage requirements.