Medicare Changes in 2023

On July 30, 1965, President Lyndon B. Johnson signed into law legislation that established the Medicare and Medicaid programs. For 57 years, these programs have been protecting the health and well-being of millions of Americans. Medicare benefits generally don’t change very much year to year. This means most of what is covered in 2022 will also be covered in 2023. What may change from year to year is the amount you pay in premiums, deductibles and copayments/coinsurance. When Medicare benefits change, it’s often to expand the program, not to reduce it. Here are a few of the changes you can expect to see in 2023, as well as resources to help you navigate through the process.

The Biden administration finalized an 8.5% increase in rates to Medicare Part D and Medicare Advantage plans.

HHS (Health and Human Services) Secretary Xavier Becerra instructed CMS (Centers for Medicare & Medicaid Services) to reassess Medicare Part B premiums for next year and said it is expected the 2023 premium will be lower than 2022. The final determination will be made later this year.

CMS announced that the average basic monthly premium for standard Medicare part D coverage is projected to be approximately $31.50 in 2023. This expected amount is a decrease of 1.8% from $32.08 in 2022.

Original Medicare has deductibles, copayments and coinsurance that can quickly add up. That’s why many people enroll in private health plans to help cover the costs that Medicare does not.

Learn the A, B, C and D of Medicare, how Medicare works and which of its plans might be right for you. Attend a AAA Minneapolis Medicare 101 educational class, which are held both online and in person.

Every year, you can make changes to your Medicare Advantage Plan or Medicare drug coverage for the following year. The annual enrollment period (AEP) is Oct. 15 through Dec. 7. Any changes you make to your Medicare Advantage Plan or Medicare drug plan would be effective Jan. 1 of the following year (2023).

To register, go to minneapolis.aaa.com/insurance/events, or contact our Health Insurance Planning Specialist, Guy Milbert, at 952-927-2752 or gmilbert@aaaminneapolis.com.