Business

Average Medicare Part D premiums will drop next year


dusanpetkovic | iStock | beautiful pictures

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.

More from Personal Finance:
Many Americans live on wages to pay wages due to inflation
Considering a job change? How to make your resume stand out
One in five Americans are avoiding their credit card statements

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.



Source link

news7f

News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button