Major Medicare changes by 2023

This year, 2023, some of the biggest changes to Medicare in many years take effect, when more than 65 million people in the United States will pay premiums and deductibles lower and will feel the effects of a landmark law that reduces the out-of-control cost of prescription drugs.

In addition, changes will go into effect to improve the way Medicare beneficiaries can access behavioral health care. Telemedicine is also likely to change. Some virtual services that have expanded during the pandemic will continue, while others may disappear if the coronavirus public health emergency is suspended in 2023, as expected.

"We keep the more than 65 million Medicare beneficiaries at the center of everything we do," said Meena Seshamani, a surgeon, health economist and director of the Center for Medicare at the Centers for Medicare & Medicaid Services in an interview with AARP. "All the work we're doing is to make care more accessible to them, make it work better and make it more affordable."

Let's take a closer look at the biggest changes to Medicare in 2023.

The Part B premiums are deducted directly from your monthly Social Security payments for most Medicare beneficiaries. Since Social Security's cost-of-living adjustment (COLA) increased earnings by 8.7% by 2023, people enrolled in both programs will see more money in their pockets each month.

The highest monthly payments paid by 7% for Medicare beneficiaries with high incomes will also decrease in 2023. Part B beneficiaries who earn more than $97,000 per year will pay premiums above the standard, depending on income. For example, a person filing an individual tax return who earns between $97,000 and $123,000 will pay $230.80 per month for Part B. In 2022, premiums started at $238.10 for high-income individuals.

Enrollment in Medicare Advantage (MA), the private health insurance alternative to Original Medicare, will likely continue to grow through 2023. Experts predict that half of all Medicare beneficiaries will be in an MA plan by the new year. The majority of Medicare beneficiaries must pay their Part B premiums, regardless of whether they have Original Medicare or an MA plan. Some of these private plans offer "reimbursement" benefits, where the insurance company pays part or all of the member's monthly Part B premium.

In our next blog we will start detailing the changes one by one so that you have more clarity on each aspect of Medicare.

If you need help with Medicare or health plans, call us for free advice. Our local number is 512-520-5957 or you can call us on our toll free number which is 855-GO-AVILA. We are here to serve you.