Medicare Part B Costs in 2023

Medicare Part B covers the bulk of your healthcare expenses through two types of services: medically necessary and preventive. Understanding how those services translate into your care and what you will pay out of pocket is essential in planning a 2023 budget.

Part B Deductible

The annual deductible for Part B is $226 in 2023, a $7 decrease from 2022. You are required to pay the full deductible amount before Medicare will start paying toward your health expenses.

Part B Premiums

You pay monthly premiums for Medicare. If you do not pay your premiums in a timely manner, your coverage will be taken away. You are given a 90-day grace period to make payments before your Part B coverage is canceled.

In 2018, Part B premium rates stayed at 2017 rates across income levels. What changed were the income brackets themselves. Many people were surprised to find out they were paying considerably more for the same income. Price hikes predominantly affected people in the top three income brackets.

In 2019, not only did the premium rates increase across all income brackets, but the brackets changed again. Instead of five income brackets, there were six. The change in brackets affected those at the highest income level only. From 2020 to 2022, the income categories were adjusted for inflation, and premium rates were increased accordingly.

For 2023, we are seeing a decrease in Part B premiums for the first time in decades! That is because the 2022 rates had been based on projections for coverage of the new Alzheimer's drug Aduhelm. The medication is taken by injection and was expected to be covered by Part B. However, the pharmaceutical manufacturer Biogen has since decreased the cost of the drug and the Centers for Medicare and Medicaid Services has limited coverage to people on clinical trials for the drug. To offset the increased costs to beneficiaries in 2022, CMS has decreased Part B premium rates in 2023.

Note that income brackets are based on your last completed income tax return. For 2023, refer to your 2021 filing.

2023 Part B Premiums for Individuals

2023 Part B Premiums for Married Couples

2023 Part B Premiums for Married People Filing as Individuals

Although the premium rates are set by marital status, these values represent how much each individual will pay for Medicare Part B each month.

Partial Part B Benefit for Immunosuppressive Drugs (Part B-ID)

Part B options may be different for people with end-stage renal disease, i.e., they are either on dialysis or need/have had a kidney transplant. ESRD Medicare coverage typically ends 36 months after a transplant has been successfully completed if the transplanted kidney remains functional.

After a transplant, you will need to be on life-long immunosuppressive drugs to prevent your body from rejecting the organ. Losing Medicare coverage after 36 months could cause unnecessary complications.

Starting in 2023, the Centers for Medicare and Medicaid Services offers a new Part B benefit for people who have had a kidney transplant. Known as the Partial Part B Benefit for Immunosuppressive Drugs (Part B-ID), its coverage is limited to immunosuppressive drugs. To qualify, someone has to have been covered by ESRD Medicare at the time of their transplant and cannot have other active insurance that could cover these medications.

Because other Part B benefits are not included with Part B-ID, what you pay for Part B premiums will be less, although the deductible and 20% coinsurance remain the same.

Part B Premiums and Social Security

You cannot be expected to pay more for Medicare if there is not also a proportionate rise in Social Security benefits. The hold harmless provision of the Social Security Act protects recipients from paying higher Medicare Part B premiums if those premiums will cause their Social Security benefits to be lower than they were the year before.

Simply put, increases in Part B premiums cannot exceed the annual cost-of-living adjustment for Social Security.

In those cases, the Medicare Part B premium will be decreased to maintain the same Social Security benefit amount. However, keep in mind that the hold harmless provision does not apply to Medicare Part D. If the Medicare Part D Income-Related Monthly Adjustment Amount increases, a beneficiary may still see a decrease in their overall Social Security benefits.

Not everyone is eligible for the hold harmless provision. Only people in the lowest income category who have already been on Medicare Part B and have had their premiums directly deducted from their Social Security checks for at least two months in the past year are considered. Beneficiaries new to Medicare and people on Medicaid will be subjected to the current premium rate.

To account for inflation, the Social Security cost-of-living adjustment for 2023 is 8.7%. This is estimated to be an additional $140 per month for the average recipient.

For those who are dual eligible, Medicaid will pay their Medicare premiums.

Part B Premiums and Medicare Advantage

You can elect to have Original Medicare (Parts A and B) or a Medicare Advantage (Part C) plan. Medicare Advantage plans are offered by private insurance companies and will cover everything that Original Medicare offers and more.

Even if you decide on a Medicare Advantage plan and pay premiums to the insurance company, you still have to pay Part B premiums to the government. You must take that added cost into consideration.

Part B Coinsurance

The Part B coinsurance remains unchanged. Medicare pays 80% and you pay 20% with the exception of preventive screening tests. As long as your healthcare provider accepts assignment, your preventive screening tests will be free.

A Word From Verywell

The majority of your health care will be paid for by Medicare Part B. Likewise, the majority of your out-of-pocket expenses will relate to Medicare Part B. Knowing what you are expected to pay for deductibles, premiums, and coinsurance in 2023 will help you budget appropriately.