Will Medicare monthly premiums rise in 2023? For many seniors, Medicare provides much-needed assistance to cover medical expenses, prescription drugs, and hospital stays. The federal program created in 1965 primarily helps seniors over the age of 65. However, this national healthcare program also helps adults with disabilities who may not be able to provide for themselves. Family caregiving often involves incredible financial costs when a family member cannot afford needed medical care. The changes to Medicare premiums should help family caregivers with these high medical costs.
Medicare is a federal health insurance program in the United States for those 65 and older, as well as some younger adults with impairments and those who have end-stage renal disease. It offers fundamental protection against the cost of hospital stays, doctor visits, and prescription medications. While there are some income requirements for Medicare, in general, most seniors find the program helpful regardless of their current income status.
Will Medicare cover your medication or glasses? There are four parts to Medicare: A, B, C, and D. Original Medicare—Parts A and B—helps cover medically necessary services:
Original Medicare will also help cover certain prescription drugs you take at home if they’re part of your doctor’s treatment plan. Most individuals have Medicare A and B for most services. However, Original Medicare will not cover hearing or visual needs. Dental coverage is not covered in Medicare Parts A and B. Original Medicare will not cover any long-term nursing home care.
Seniors might add coverage through Medicare Parts C and D which will cover additional medical needs like eye care or dental care for an extra cost. Unfortunately, many seniors cannot afford these insurance benefits and go without necessary dental care, eye care, and overall healthcare.
Medicare benefits differ state-to-state. Changes in income, residency, or overall health may affect the amount of coverage received or the ability to receive needed medical care. For this reason, it’s important to check your medical insurance plan on a regular basis for any changes in policies or programs.
Medicare Part C, also known as Medicare Advantage, combines cost-sharing of outpatient services and hospital stays as well as prescription drug coverage. What if you need glasses or hearing aids? It also adds extra benefits not found in traditional Medicare (Parts A and B) including preventive care and vision, hearing, and dental coverage.
Brand-name and generic prescription medications are covered by Medicare Part D. Additionally, it covers some over-the-counter medicines, vaccinations, medical equipment, and other services. Your plan may also include preventive care, such as health exams and vaccinations. In 2022 the federal government passed legislation lowering the overall cost of prescription drugs to seniors as part of a new effort to prioritize low-income Americans who need healthcare.
Medicare changes each year. This year notable differences include seniors paying a slightly lower monthly Part B rate and deductible. The new Medicare program prioritizes needy families over high-income families. Family caregiving often involves taking on financial burdens for care recipients. Many seniors do not have enough earnings or savings to pay for needed medical care. The changes to Medicare in 2023 will help offset some of the costs low-income Americans face, especially with the steep rise in inflation and overall healthcare costs.
Some families will see a rise in their costs and Medicare premiums. Americans making more than $500,000 per year will see higher Medicare premiums for Parts B and D. In general premiums will rise for individuals making over $97,000 yearly and married couples higher than $194,000.
Not everyone will see a rise in Medicare premiums. The changes made reduced costs for lower-income seniors and Medicare recipients. For example, Part A premiums, which cover necessary medical expenses, will not see a change if a Medicare recipient has paid into the Medicare system for a decade or more. There will be fewer out-of-pocket costs for prescriptions for seniors overall, and many vaccinations will be covered.
Why are there changes for Medicare this year? Increasing higher costs and the aging population is leading to higher and higher costs for the program. To offset these costs, the program will now focus on seniors in lower income brackets. Family caregivers helping seniors with limited income will benefit from these updates to Medicare. The changes to the program will help offset the rising costs of the Medicare program.
Medicare Part A hospital insurance covers inpatient hospital care, skilled nursing facility, hospice, lab tests, surgery, home health care. The monthly Medicare Part A premium for the 12 months beginning January 1, 2023 will be $506 for enrollees age 65 and over who are not otherwise eligible for benefits under Medicare Part A and by other individuals with disabilities who have exhausted other entitlement. The monthly standard premium for the individuals eligible under section 1818(d)(4)(B) of the Social Security Act is $278.
Medicare Part B is the part of the program that pays all or part of the costs for physicians' services, outpatient hospital services, some home health services, ambulatory surgical centers, and comprehensive outpatient rehabilitation facilities. The standard monthly premium for Medicare Part B beginning January 1, 2023 for aged (age 65 and over) and disabled (under age 65) beneficiaries is $164.90, a decrease from $170.10 in 2022.
Since 2011, Medicare Part D premiums for beneficiaries with higher incomes have been based on income. This income-related monthly adjustment amount affects almost 8 percent of individuals with Medicare Part D. Part D fees vary from state-to-state, and around two-thirds of beneficiaries pay the premiums directly to the plan operator, while the remaining are taken out from Social Security benefit payments.
It is important that you help your family member enroll for Medicare once they become eligible. Annual open enrollment for Medicare takes place from October 15 through December 7 each year. Research available coverage alternatives, evaluate and compare Medicare plans, and enroll in the one that best suits their medical needs. Seniors have the option to enlist as early as three months before turning 65 and as late as three months after.
If you have a handicap, renal failure, or are the spouse of someone receiving benefits or any combination of these conditions, you might be eligible for Medicare early. Individuals with disabilities should enroll as soon as possible to receive Medicare benefits. Demonstrate that a medical condition prohibits gainful employment. Having the right medical documentation and working with a qualified social worker can help disabled adults navigate the Medicare enrollment process.
The care recipient under your care may need help applying for Medicare coverage each year. Family caregiving can result in significant financial costs. Medicare provides much-needed benefits for seniors that are low-income but require regular medical care. Families who have loved ones with serious long-term illnesses often need Medicare to supplement any private insurance, regardless of income level. Help your loved one get the Medicare coverage they need so they can live a healthy life.
