The government said it’s lowering the monthly cost for Medicare’s outpatient coverage by 3% next year — an unusual direction that’s going to save older adults about 3% on Part B insurance and the first decrease in a decade.

President Joe Biden made the announcement Tuesday at the White House.

Part B covers outpatient hospital services and doctor visits. The Centers for Medicare & Medicaid Services said the standard monthly premium will be $164.90 in 2023; this year the premium was $170.10. Premiums are adjusted based on income, so that’s the most common price.

National Results
See National results update in real time

The annual deductible will be $7 less, at $226 in 2023.

Other deductibles, though, are going up. And that’s far less heralded.

Related
Why some Americans ration or skip their medication and what Congress could do to help
Will you get insulin-cost relief from the inflation bill? Not if you have private insurance
Government no longer paying cost of COVID tests, treatment, leave

Medicare Part A’s deductible has been set at $1,600 in 2023, which is a $44 increase. Part A covers hospitalization and the deductible, which applies to the first 60 days, is per hospitalization. Those who are in the hospital for 61-90 days will be charged coinsurance up to $400 a day, an $11 increase.

View Comments

According to Medicare.gov, “There’s no yearly limit on what you pay out-of-pocket, unless you have supplemental coverage, like a Medicare Supplement Insurance (Medigap) policy, or you join a Medicare Advantage Plan.”

CNBC reported, “Additionally, so-called income-related adjustment amounts, or IRMAAs, will kick in for single beneficiaries at modified adjusted gross income of more than $97,000, up from $91,000 this year. For married beneficiaries filing a joint tax return, the extra monthly charge will apply if income is above $194,000, up from $182,000 this year.”

Why the decrease in premium?

A MarketWatch report said that “The decrease can be attributed to previously higher estimated projections for spending on Part B services and a new Alzheimer’s drug called Aduhelm, CMS said. The overestimate led to a larger reserve in the Part B account, which the government passed on to cut any premium increase for beneficiaries, the agency said.“

Medicare open enrollment starts Oct. 15.

Looking for comments?
Find comments in their new home! Click the buttons at the top or within the article to view them — or use the button below for quick access.