By Brett Gottlieb

If you’ve read our previous blog articles about Medicare, you likely know the importance of open enrollment and understanding your coverage options. In this article, we’ll discuss the changes you can expect to see in Medicare coverage and costs starting in 2023. With recent legislative updates and other changes, here’s what you need to know to ensure you are making the most of your coverage.

2023 Medicare Changes

Medicare coverage is divided into 4 parts, each with its own coverages and premium payments. Below is an overview of the 2023 Medicare changes broken down by each part.

Part A

Also known as hospital insurance, Medicare Part A covers inpatient hospital care and some nursing care coverage. Keep in mind that Medicare does not usually cover long-term care costs, so most retirees will have to plan for this expense separately.

In 2023, the deductible and coinsurance requirements for Part A services will increase to:

• $1,600 per benefit period for the first 60 days of inpatient hospital care
• $400 per day for days 61-90 spent in a hospital

• $800 for lifetime reserve days
• $200 per day for days 21-100 spent in a skilled nursing facility

Part B

Part B is medical insurance and covers things like preventative care, doctor visits, and other outpatient services. You must pay a monthly premium for Part B coverage. Together, Parts A and B are known as Original Medicare.

Thanks to lower-than-expected spending on Part B services in 2022, the premium for this coverage will be dropping by 3% in 2023. Beneficiaries enrolled in Medicare Part B can expect to see the standard monthly premium drop to $164.90, down from $170.10 in 2022. Annual deductibles will also drop to $226, down from $233.

Keep in mind that if your modified adjusted gross income (MAGI) from 2021 exceeds certain levels, you will be subject to an additional premium charge called the Income Related Monthly Adjustment Amount (IRMAA). For 2023, the IRMAA additional premiums are:

Part C

Part C is an alternative to Original Medicare that is offered through Medicare-approved private companies. It bundles coverages offered by Part A, Part B, and often includes Part D as well. There are no mandated changes to Part C coverage or costs for 2023.

Part D

This is an optional private insurance add-on that includes drug coverage. The 2023 deductible for Part D is $505, up from $480 in 2022.

The Inflation Reduction Act has created several important changes to Medicare Part D, some of which are slated to take effect in 2023. These include:

• Caps on insulin costs: As of January 1, 2023, all Medicare Part D plans will have a

$35 monthly cap on what beneficiaries will pay for insulin. Additionally, deductibles will not be required for this cap to take effect.

• Improved vaccine coverage: Recommended vaccines will be fully covered under Medicare Part D starting in 2023.

• Catastrophic coverage coinsurance: Currently, there is a 5% coinsurance charge for catastrophic coverage. This charge will be eliminated starting in 2024.

• Capping out-of-pocket costs: In 2025, beneficiaries will have a $2,000 annual cap on Part D out-of-pocket expenses.

• Price negotiation: Starting in 2026, Medicare will be able to directly negotiate the price of some prescription drugs.

Lastly, the IRMAA additional premiums also apply to Part D coverage.

How We Can Help

Navigating Medicare doesn’t have to be overwhelming. At Comprehensive Advisor, we’re here to help you make the best coverage decision for your unique needs. If you have questions about your current Medicare plan, or you’d like to plan for future coverage, please reach out to us today. Email us at info@ComprehensiveAdvisor.com or call (760) 813-2125.

About Our Advisors

Brett Gottlieb is the founder of Comprehensive Advisor and a financial advisor with nearly two decades of industry experience. He graduated from California State University-Chico with two bachelor’s degrees, in business administration and economics, and is Life Insurance licensed in several states. He is passionate about guiding his clients on retirement income planning, helping each client pursue their specific retirement goals, and defending the assets his clients have worked so hard to achieve. Brett is a California native and currently resides in San Elijo Hills with his beautiful wife and three children.

Our team of qualified professionals have experience in the financial service industry, and our advisors hail from some of the largest independent broker/dealers and banking institutions in the country. They have dedicated their professional careers to creating personalized financial solutions for individuals and families who seek successful retirement planning and currently offer investment advisory services through AE Wealth Management, LLC. Our advisors take a common-sense approach to the planning process and work with clients to create a retirement road map to help ensure their assets are protected and they receive the income needed to enjoy their future. Based in Carlsbad, California, they work with clients throughout San Diego County and beyond. Learn more by connecting with Brett on LinkedIn or email them at info@ComprehensiveAdvisor.com.

Investment advisory products and services made available through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor. Insurance products are offered through the insurance business C.A. Financial & Insurance Services. Comprehensive Advisor, LLC is an Investment Advisory practice that offers products and services through AE Wealth Management LLC (AEWM), a Registered Investment Advisor. AEWM does not offer insurance products. The insurance products offered by C.A. Financial & Insurance Services are not subject to investment Advisor requirements. C.A. Financial & Insurance Services, CA Ins. Lic. #6000262. This material is intended to provide general information and is believed to be reliable, but accuracy and completeness cannot be guaranteed. Neither the firm nor its representatives may give tax or legal advice. Investing involves risk, including the potential loss of principal. Any references to protection benefits, lifetime income, etc., generally refer to fixed insurance products, never securities or investment products. Our firm is not affiliated with the U.S. government or any governmental agency. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Product and feature availability may vary by state.

Medicare Advantage Plans are insured or covered by a Medicare Advantage organization with a Medicare contract and/or a Medicare-approved Part D sponsor. Enrollment in the plan depends on the plan’s contract renewal with Medicare. We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all of your options. Availability of benefits and plans varies by carrier and location. Deductibles, copays and coinsurance may apply. Plans purchased after initial enrollment period are subject to eligibility requirements.

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