There will be a deduction for people who has Medicare Part B plans. The monthly premium will be three percent lower than last year.
There will be a deduction for people who has Medicare Part B plans. (Photo: AARP)
2023 Medicare Part B Monthly Premium Costs
For this year, the monthly premium for Medicare Part B will be $164.90 which is $5.20 lower than last year’s $170.10. According to the Centers for Medicare and Medicaid Services, the annual deductions for Part B will be $226 which is $7 lower than last year’s $233. CNBC says that the main reason for this could be traced to the yearly adjustments the Social Security Administration makes. This involves Medicare programs which can either be raised or lowered based on rules set out in the Social Security Act.
This will be the first time the standard premium for Part B medical insurance has fallen in a decade. Price drops in Medicare premiums are very unusual and the last time this happened was in 2012 when the premium decreased by $15.50 a month, primarily due to historically low healthcare utilization rates. The lowering of prices is not related to lower utilization. This happens due to some miscalculations CMS has to make up for.
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There will be a deduction for people who has Medicare Part B plans. (Photo: Forbes)
Reasons Why Medicare Premium Prices are Lower for 2023
Upon the recommendation of CMS and Medicaid Services, any excess Supplementary Medical Insurance Trust Fund money can be passed along to those with Medicare Part B coverage. This will greatly help lower the premium costs and deductibles.
According to a published post by CNET, the reason why this year’s Part B premium is lowered may be due to the lower spending for a new drug called Aduhelm. This is intended to treat Alzheimer’s disease. There were more reserves left over in the Part B account of the SMI fund since less money was spent on that drug and other Part B items. This will now be used to limit future Part B premium increases.
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