Medicare & You, 2023
December 9, 2022
Understanding the Many Choices in Healthcare
August 9, 2023
Important Changes to Medicare
There are several important changes coming to Medicare in 2023. These include premium and deductible increases for Part A and lower rates for Part B. There are also changes to Medicare Advantage and Medicare Part D.
(This article appeared in the Winter 2023 Issue of GOAL Magazine. You can visit the entire issue online at https://issuu.com/go2goal/docs/goal_magazine_winter_2023_low_res_1_)
Allison Clayton of Insurance Services, LLC
Medicare is complicated and involves multiple Federal agencies, so it’s nice to know there are local experts you can turn to. For the last ten years, Allison Clayton has worked as a licensed independent insurance agent with Insurance Services LLC, in Greensburg, PA.
Allison knows that understanding Medicare and retirement can be a lot more stressful than most people realize, until they have to do it for themselves. Her passion to educate and to assist people through lifetime transitions led her to Insurance Services, LLC, a family-owned and operated independent insurance agency specializing in serving Medicare-eligibles since 1980 and is A+ rated at the Better Business Bureau.
In this article, Allison takes a look at some of the most important Medicare changes for 2023. You can learn more about Allison and how she helps those who are eligible for Medicare at her website: https://www.insuranceallison.com/.
Medicare Part B
Medicare Part B is often called medical insurance and covers services that are medically necessary and preventative in nature. For example, services and supplies needed to diagnose or treat your medical condition (and which meet accepted standards) are covered, as are health care measures to prevent illness or detect it at an early stage.
Part B also covers ambulance services, mental health services, and even some outpatient prescription drugs. It can be a large portion of a Medicare recipients healthcare.
The good news— the standard premium for Medicare Part B is going DOWN to $164.90/month in 2023. That is a decrease from $170.10/month in 2022 and the first year-over-year decrease since 2012.
In addition to the upcoming Part B premium reduction, Medicare recipients can also expect to see a lower deductible. The Medicare Part B deductible for 2023 will be $226, which is $7 lower than in 2022.
This change is being made possible because Medicare Part B spending was lower than expected in 2022, leaving a surplus that is being used to decrease Medicare premiums next year.
People who have Medicare Advantage are also expected to be affected by the Part B premium changes. Contact Allison Clayton at 724-879-5030 for more information.
Part B IRMAA Changes
Medicare imposes surcharges on higher-income beneficiaries, assuming that they can pay more for their own healthcare and should shoulder a higher percentage of program costs. This extra charge is called the Income-Related Monthly Adjustment Amount or IRMAA. It applies to about 8% of Medicare beneficiaries, but if it applies to you, it may still be an unappreciated burden.
The good news— in 2023, the income brackets that trigger IRMAA surcharges are changing. For singles in 2022, IRMAA began at $91,000, but next year the threshold rises to start at $97,000. For married couples, the threshold was $182,000 last year, but will rise to $194,000 in 2023.
For the purposes of IRMAA, your income is your Adjusted Gross Income, plus municipal bond interest from two years ago. This means your 2021 income determines your IRMAA obligations in 2023. However, untaxed Social Security benefits aren’t included in the income for determining IRMAA.
You can learn more about these changes through 2024 by visiting a recent article about Medicare Part B IRMAA at https://thefinancebuff.com/medicare-irmaa-income-brackets.html You can also contact Allison Clayton at Insurance Services, LLC, 724-879-5030.
Medicare Advantage
Medicare Advantage Plans, sometimes called “Part C” or “MA Plans” cover many of the same things as original Medicare. You choose a Medicare Advantage Plan from a list of private health plans that are approved by Medicare. The plans are are becoming more popular each year.
The average Medicare Advantage (Medicare Part C) premium is expected to be about $18/month in 2023 (in addition to the cost of Part B), which is down from $19.52/month in 2022 and $23/month in 2020.
Other Medicare Changes of Note Include
Medicare is a complex system and there are more changes anticipated next year and in 2024 than can be covered in one article; however, we do have a few more changes to mention.
- Social Security’s Cost of Living Increase (COLA) for 2023 will be 8.7%. However, since Part B premiums are decreasing, none of that increase will be eaten up by hikes to Medicare costs.
- In addition to lower Part B premiums, the Part B deductible is decreasing from $233 in 2022 to $226 in 2023. The first deductible decrease since 2012.
- Part A premiums are increasing by about 1.4%, and the Part A deductible is increasing by about 2.8%. (Most beneficiaries do not pay a premium for Part A.)
- Medicare Advantage (Medicare Part C) premiums are expected to be about $18/month in 2023, down from $$19.52/month in 2022.
- Average Medicare Part D prescription drug coverage premiums are also expected to drop slightly.
- Kidney transplant recipients can use Part B immunosuppressive drug coverage of life (instead of only 36 month).
Why Work with Allison?
Being an independent insurance agent working with Insurance Services, LLC, Allison can offer a variety of plans so there is no bias when we recommend a Medigap, Medicare Advantage, or a Prescription drug plan.
“We are licensed with several insurance carriers, so their rates are at our fingertips to compare instantly, and we can access the different insurance carrier rate history over the years, have familiarity with their customer service, and website portals.”
“I know that finding the right plan can be a confusing task and my main goal in all of this is to MAKE MEDICARE EASY. The first thing that I offer is educational seminars via Zoom and in person to review how Original Medicare works and what you need to do when you are ready to take the plunge and retire (Yay!)”
“After we navigate setting up your Original Medicare, I offer a needs analysis that reviews your medication, doctors, and benefits that are important to you, etc. Then we start to narrow down some plans that are right for you.”
Open Enrollment Periods
When it comes to Medicare, there are two periods each year for you to be aware of.
Medicare Open Enrollment takes place from October 15th to December 7th each year.
Medicare Advantage Enrollment takes place from January 1st to March 31st each year.
Do you need to review your Medicare health insurance premiums, deductibles, and benefits with a knowledgeable insurance professional? Would you like to learn whether or not Medicare Advantage is right for you?
As a local, independent insurance agent, Allison Clayton is ready to help you make the best choices for your Medicare health coverage.
Learn More
The world of Medicare is of exceptional benefit to the nation’s seniors, but it can also be a complex and confusing set of services to navigate.
Allison Clayton is available for in-person (if needed), phone, and virtual appointments. If you would simply like a quick phone review, you can call anytime at 724-879-5030.
Visit Allison’s website at https://www.insuranceallison.com/. She can answer all your Medicare questions and keep you on the right track!
There is also a website scheduling option at her website: https://www.insuranceallison.com/request-an-appointment/
