Prices have changed slightly this year, but there aren’t many surprises for Medicare costs in 2023.
You can avoid many of the charges below by adding Medicare Supplement or switching to Medicare Advantage coverage.
Medicare Part A Costs
Medicare Part A covers inpatient stays in hospitals and skilled nursing facilities, home health care and hospice. You must keep Part A and B to get additional coverage, such as a Medicare supplement or Medicare Advantage plan.
2023 Part A Monthly Premium
- Most people don’t pay a Part A premium because they paid Medicare taxes while working.
- If you don’t qualify for premium-free Part A, you’ll pay up to $506 per month.
- If you are almost qualified for premium-free Part A by working 30 quarters, you’ll pay up to $278 per month.1
2023 Medicare Hospital Stay
A benefit period begins once you’re admitted to the hospital. In 2023, you’ll pay:
- $1,600 deductible per benefit period
- $400 per day for days 61–90 of each benefit period2
- $800 per day for days 91-150 while using your 60 lifetime reserve days, up to a maximum of 60 days over your lifetime3
Some Medicare Supplement plans pay for these costs in full.
2023 Skilled Nursing Facility Medicare Stay
In 2023, you pay:
- $0 for the first 20 days of each benefit period
- $200 per day for days 21–100 of each benefit period4
- All costs for each day after day 100 of the benefit period
Certain Medicare Supplement plans completely cover these costs.
Medicare Part B Costs
Medicare Part B generally covers preventive services and outpatient care – including general practitioners and same-day procedures. You need Parts A and B to get supplemental coverage.
2023 Part B Monthly Premium
The standard Part B premium in 2023 is $164.90 per month.5
However, if your Medicare premiums are paid directly from your Social Security benefits, Medicare cannot cause you to receive less Social Security than you did in the previous year. Accordingly, some people who receive Social Security benefits pay less than $164.90.
You pay the standard premium amount (or higher) if:
- You enroll in Part B for the first time in 2023.
- You don’t get Social Security benefits.
- You’re directly billed for your Part B premiums.
- You’re dual-eligible for Medicare and Medicaid, and Medicaid pays your premiums. (Your state will pay the standard premium of $164.90 in 2023.)
If your modified adjusted gross income, as reported on your IRS tax return from 2 years ago, is above a certain amount, here’s what you’ll pay6:
|If your yearly income in 2021 was:|
|File individual tax return||File joint tax return||File married & separate tax return||You pay(in 2023):|
|$97,000 or less||$194,000 or less||$97,000 or less||$164.90|
|above $97,000up to $123,000||above $194,000up to $246,000||not applicable||$230.80|
|above $123,000up to $153,000||above $246,000up to $306,000||not applicable||$329.70|
|above $153,000up to $183,000||above $306,000up to $366,000||not applicable||$428.60|
|above $183,000up to $500,000||above $366,000up to $750,000||above $97,000up to $403,000||$527.50|
|above $500,000||above $750,000||above $403,000||$560.50|
If you pay a Part B late enrollment penalty, these amounts may be higher.
2023 Part B Deductible
The Medicare Part B deductible is $226 per year.7 Medicare will contribute to your medical costs once you spend this amount.
Medicare Advantage (Part C) Costs
Medicare Part C describes private insurance plans that act as an optional replacement for Part A and Part B. Part C members still pay Part B premiums.
Average Medicare Advantage premiums dropped to $18.00 in 2023. Although each Medicare Advantage plan is different, the government believes that monthly Medicare Advantage premiums had decreased since 2017, when they were $31.91.2
Calling an agent via Healthcare.com is an easy way to compare Medicare Advantage prices. You can also use Healthcare.com’s plan comparison tool to check out Medicare Advantage in your area.
2023 Medicare Advantage Maximum Out-of-Pocket Cost
In 2023, the maximum out-of-pocket cost for those with Medicare Advantage is $8,300.8 You won’t have to pay a penny more than this amount for services that would have been covered under Original Medicare (Parts A & B).
However, this only applies to services that would have been covered under Original Medicare. Additional services in certain Part C plans – such as SilverSneakers, weight loss programs, or RX drugs – can exceed this limit.
Medicare Prescription Drug Plans (Part D) Costs
Medicare Part D is an optional RX drug help that works with Medicare. People cannot be denied coverage due to health reasons.
2023 Part D Deductible
The annual deductible for Part D prescription drug coverage in a standalone Part D drug plan cannot exceed $505.9
2023 Part D Monthly Premium
Average Part D premiums are expected to increase to $43 in 2023.10 The average Part D premium has been between $30 and $35 per month for over a decade.
The chart below shows your estimated monthly prescription drug plan adjustments (an additional amount based on income added to the plan premium.) If your income is above a certain limit, you will pay an income-related monthly adjustment amount in addition to your plan premium.
|If your yearly income in 2021 was:|
|You pay(in 2023):|
|File individual tax return||File joint tax return||File married & separate tax return||Your plan premium|
|$97,000 or less||$194,000 or less||$97,000 or less||$12.20 + your plan premium|
|above $97,000up to $123,000||above $194,000up to $246,000||not applicable||$31.50 + your plan premium|
|above $123,000up to $153,000||above $246,000up to $306,000||not applicable||$50.70 + your plan premium|
|above $153,000up to $183,000||above $306,000up to $366,000||not applicable||$70.00 + your plan premium|
|above $183,000up to $500,000||above $366,000up to $750,000||above $97,000up to $403,000||$76.40 + your plan premium|
|above $500,000||above $750,000||above $403,000|
2023 Part D National Base Beneficiary Premium
The Part D base premium is $32.74, a decrease of $0.45 from last year. This figure estimates the Part D late enrollment penalty and the income-related monthly adjustment amounts listed in the table above. The national base beneficiary premium amount can change each year.