Average Medicare Part D premiums will drop next year
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Medicare beneficiaries could see their prescription drug premiums drop in 2023, although their deductible could go up.
According to the Centers for Medicare & Medicaid Services, the average basic monthly premium for Medicare Part D is expected to be about $31.50 next year, down 58 cents, from $32.08 in 2022.
Meanwhile, next year’s maximum deductible for drug coverage is expected to increase to $505, up from $480 this year, according to information released by the agency a few months ago. Not all plans have a deductible, or there may be a much smaller amount than the maximum allowed.
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About 49 million Medicare beneficiaries have prescription drug coverage. Some get it as a standalone Part D plan along with original Medicare (Part A hospital insurance and Part B outpatient care insurance).
Other individuals enroll in Advantage Plans that come with drug benefits. And often see such packages come with a small monthly payment or a low one (not included Part B premium).
Danielle Roberts, co-founder of insurance company Boomer Benefits, said: “We will continue to see a lot of low or zero premium Benefit Plans with attractive benefits in the coming year.
Note that deductibles and premiums can vary widely between plans, as can the specifics of what prescription drugs are covered and how much you’ll pay for them. (Congressional Democrats are heading passed a bill that would allow Medicare to negotiate the price of some drugsas well as limit your out-of-pocket costs for prescriptions to $2,000 per year.)
In addition, some Medicare beneficiaries pay more for Part D premiums because their income is high enough to generate the so-called income-related monthly adjustment amount, or IRMAA. Those supplements also apply to Part B premiums.
In 2022, those monthly surcharges increase for single filers to $91,000 and for couples filing jointly to $182,000. Have some strategies you can use to try avoiding IRMAA or reduce them.
Medicare’s open enrollment period – when you can sign up for an Advantage Plan and/or drug coverage for 2023 – opens October 15 and runs through December 7.