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How Much Does Medicare Cost in 2023?


Summary: The cost of Medicare in 2023 depends on the coverage you enroll in. Because costs change year to year, understanding your Medicare premiums in 2023 and other costs will help you mitigate them. Review 2023 Medicare costs at a glance to better understand your healthcare expenses. Estimated Read Time: 11 mins

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Table of Contents:

  1. How Much Does Medicare Cost?
  2. Medicare Premium Chart
  3. Medicare Part A Cost
  4. Medicare Part B Cost
  5. Medicare Supplement Plans Help Lower Medicare Costs
  6. Medicare Costs Vary for Medicare Advantage Plans
  7. Medicare Costs for Medicare Prescription Drug Plans
  8. Medicare Premiums in 2023 and Tax Deductions
  9. How Much Is Deducted From Social Security for Medicare?
  10. How Much Does Medicare Cost Per Month?
  11. How Much Will Medicare Cost in 2024?
  12. How to Find Out More About Medicare Costs in 2023

If you have Medicare or will be enrolling soon, you have undoubtedly wondered about costs at some point. Medicare is not free, and costs change annually. Therefore, the cost of Medicare in 2023 is unique to the year itself.

Understanding your Medicare premiums and deductibles in 2023 is essential in covering your healthcare costs. Each part of Medicare comes with its own costs that you may be responsible for. It’s important to fully understand those costs to avoid unexpected expenses.

Below, we will go over Medicare costs, including premiums, deductibles, coinsurances, and copayments for all parts of Medicare. We will also give you a glimpse at what you can expect to pay out-of-pocket in 2023.

How Much Does Medicare Cost?

How much Medicare costs in 2023 can depend on many factors, but it’s essential to break down these expenses with the following in mind:

  • Remember that Medicare costs in 2023 will be different than in other years.
  • Generally, the cost of Medicare rises as the cost of healthcare rises over time.
  • There are different Medicare premiums in 2023 to consider because there are different Medicare Parts. This includes Original Medicare (Medicare Parts A and B), Medicare Advantage (Part C), and Medicare Part D prescription coverage.
  • Furthermore, if you are looking to supplement your Original Medicare benefits, there are also Medicare Supplement (Medigap) plans to consider.

The increase in Medicare costs year-over-year usually comes alongside an increase in the Social Security benefits.

Although Medicare’s cost increase for 2022 was the largest in years, some costs – such as the Medicare Part B premium and deductible – are decreasing for 2023.

Medicare Premium Chart

The cost of Medicare in 2023 can vary, and different Parts will have different costs associated with them. Remember, individual costs will be different for each beneficiary. However, the Medicare premium chart below can help you gain a better understanding of the 2023 Medicare costs at a glance:

2023 Medicare Costs
Medicare Part A Premium If you or your spouse paid Medicare tax for 40 working quarters (10 years), you qualify for premium-free Medicare Part A – which applies to about 99% of those on Medicare. However, those not meeting this requirement could pay up to $506 each month for coverage.
Medicare Part A Deductible and Coinsurance
  • $1,600 deductible for each benefit period of care
  • Inpatient Days 1-60: $0; Days 61-90: $400 per day for each period of care; Days 91+: $800 per each lifetime reserve day (you receive 60 lifetime reserve days)
  • Once you exceed lifetime reserve days, you cover 100% of the cost
Medicare Part B Premium Standard Medicare Part B Premium: $164.90. This could be higher based on income (IRMAA applies).
Medicare Part B Deductible and Coinsurance The 2023 annual Medicare Part B deductible is $226. After you meet the deductible, you’re responsible for 20% coinsurance for the Medicare-approved amount for medical services and equipment.
Medicare Part C Premium, Coinsurance, and Deductible The Medicare Part C (Medicare Advantage) premium, coinsurance, and deductible vary by plan.
Medicare Part D Premium, Coinsurance, and Deductible The Medicare Part D (prescription drug plan) premium, coinsurance, and deductible vary by plan; however, the maximum Medicare Part D deductible is $505 in 2023. IRMAA also applies to Medicare Part D premiums for higher-income earners.

Medicare Part A Cost


For many, Medicare Part A cost includes a $0 monthly premium. However, depending on how many quarters you paid Medicare tax in the U.S., you may pay a monthly premium of $278 or $506. The cost of Medicare premiums you pay is based on the number of years you pay Medicare tax.

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2023 Medicare Part A Costs
Quarters Paying Medicare Taxes  Medicare Part A Monthly Premium
40+ $0
31-39 $278
0-29 $506

In addition to the monthly premium, you will also pay the Medicare Part A deductible for each new benefit period you use your Part A coverage. The Medicare Part A deductible in 2023 is $1,600 per benefit.

Medicare Part B Cost

 

Your Medicare Part B premium is part of your Medicare cost. The base Medicare Part B premium in 2023 is $164.90. However, that cost is based on your monthly adjusted gross income from the last two years.

This can be found on your tax return. If your income exceeds a specific threshold, the standard Medicare Part B cost increases. Thus, higher earners have higher monthly premiums. This is known as the Income Related Monthly Adjustment Amount (IRMAA).

Your IRMAA is a predetermined amount added to your monthly Medicare Part B premium based on your income bracket from two tax returns ago.

So, you may be wondering, how much does Medicare premium cost if I exceed the threshold? To see if your annual income will necessitate a higher premium, refer to the IRMAA chart below for Part B premiums.

2021 Annual Income: Individual 2021 Annual Income: Filing Jointly Medicare Part B Premium 2023
$0 – $97,000 $0 – $194,000 $164.90
$97,001 – $123,000 $194,001 – $246,000 $230.80
$123,001 – $153,000 $246,001 – $306,000 $329.70
$153,001 – $183,000 $306,001 – $366,000 $428.60
$183,001 – $499,999 $366,001 – $749,999 $527.50
$500,000+ $750,000+ $560.50

If you are assessed an IRMAA charge as part of your Medicare costs and recently had a decrease in income due to an event such as retirement or the loss of your spouse, you can file an IRMAA appeal for your local Social Security department to review.

You will want to be aware of the Medicare Part B deductible along with the monthly premium. For 2023, the Medicare Part B deductible amount is $226. This means you will need to pay the first $226 of your healthcare costs out-of-pocket before your Medicare Part B benefits will kick in.

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Medicare Supplement Plans Help Lower Medicare Costs

Medicare costs at a glance may seem nonexistent or small, yet there are many different variables and expenses you might face. Depending on your healthcare needs, these costs can add up quickly. Medicare Supplement plans help cover the leftover costs from Original Medicare (Medicare Part A and Part B). There are 12 unique Medicare Supplement plans available, each identified by a different letter. Each Medigap plan has a different cost due to its benefits. For example, Medicare Supplement Plan G costs more than Medicare Supplement Plan K because Plan G offers more comprehensive benefits. The overall average cost for a Medicare Supplement plan is currently $163 in 2023.

Medicare Supplement plans have standardized benefits throughout the country. This means that your Medicare costs, such as out-of-pocket costs from a Medicare Supplement plan with the same letter identifier, are the same in Vermont as they are in Oregon, Arkansas, North Carolina, etc.

The only Medicare cost that is not standardized by Medicare Supplement plans is the monthly premium cost. This cost is determined by each carrier and is based on your age, ZIP Code, tobacco-use status, and in some cases, your health. There are several other factors your premium may be based on; however, each carrier has its own set of standards when determining the premium.

Medicare monthly costs for supplemental coverage often pale compared to the cost of facing healthcare expenses alone. Because different lettered plans are available, beneficiaries are encouraged to shop and compare a level of coverage that is right for their individual healthcare and budget needs.

It’s worth noting that with Original Medicare, you can face unlimited out-of-pocket costs. This is why Medigap plans can be so helpful. A Medicare Supplement plan can help you cover costly health expenses that continue to rise by supplementing your coverage.

Medicare Costs Vary for Medicare Advantage Plans

All Medicare Advantage plans have different Medicare costs, including premium, copay, deductible, and coinsurance amounts.

While this coverage may provide low Medicare costs and can seem appealing to many Americans, you want to be sure that you are looking at the full costs of Medicare, including premiums, out-of-pocket costs, and more. Saving on the premium is a great perk. However, these Medicare Advantage plans often come with high maximum out-of-pocket limits, as well as doctor and hospital restrictions.

Due to these hidden expenses and restrictions with Medicare Advantage plans, you might find lower Medicare costs by signing up for a Medicare Supplement plan with a higher monthly premium and lower out-of-pocket costs. You can also use any doctor, as Medigap plans have no network restrictions.

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Medicare Costs for Medicare Prescription Drug Plans

Just like Medicare Part B, Part D may have varying Medicare costs as the plan charges high-income earners higher monthly premiums. Thus, you may see an increase in your monthly Medicare Part D premium as compared to what Medicare.gov lists if your income exceeds the set amount.

2021 Annual Income: Individual 2021 Annual Income: Filing Jointly Medicare Part D Premium 2023
$0 – $97,000 $0 – $194,000 Plan Premium
$97,001 – $123,000 $194,001 – $246,000 Plan Premium + $12.20
$123,001 – $153,000 $246,001 – $306,000 Plan Premium + $31.50
$153,001 – $183,000 $306,001 – $366,000 Plan Premium + $50.70
$183,001 – $499,999 $366,001 – $749,999 Plan Premium + $70.00
$500,000+ $750,000+ Plan Premium + $76.40

In 2023, the maximum deductible for any Medicare Part D policy is $505. However, each Medicare Part D plan is different. The medication you take will determine the best Medicare Part D plan for you. Within your Medicare Part D plan, drug tiers will determine the cost of your medications.

Typically, higher specialty tier drugs cost the most, and lower-tier medications are available at a lower cost. While in the donut hole, you’ll pay more than usual for your medications. However, not everyone falls into this coverage gap.

Medicare Premiums in 2023 and Tax Deductions

Medicare costs are tax deductible, depending on how you file your taxes. You should always work with a certified public accountant (CPA) before making tax decisions, and the limits of your deductions will vary from year to year and again, depending on how you file. Here are some key considerations:

  • You’ll likely need to file with an itemized deduction.
  • You’ll also need to have medical and dental expenses meeting the threshold in relation to your qualifying adjusted gross income.
  • There are different types of tax deductions available.

Understanding how to deal with Medicare premiums and deductions can help you save money, but it is a complex endeavor. Always seek the help of a licensed professional before making a decision.

How Much Is Deducted From Social Security for Medicare?

Generally, the amount taken out is equivalent to your Medicare Part B Medicare premium. Those with higher incomes may have more taken out of their check than those with lower incomes. You also have the option to deduct Medicare Part C or Part D costs from your Social Security benefit.

Deducting your Medicare Part D premiums is how many beneficiaries cover their benefits. Your benefit check will either have your premium paid directly to Medicare, or you will find a Part D adjusted amount each month that is deducted.

How Much Does Medicare Cost Per Month?

The answer to this question is different for everyone. People who qualify for Medicaid and premium-free Medicare Part A could pay a minimal amount each month. But someone who didn’t pay into Medicare will pay $506 for Medicare Part A each month, on top of Medicare Part B costs, which are more significant for those with a higher income.

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Other considerations determine how much Medicare costs monthly. You may have a higher monthly Medicare premium if you enroll with a Medigap plan instead of Medicare Advantage coverage. You may also have more premiums to consider if you have Medicare Part D.

Remember, there are several variables to contend with, and everyone’s healthcare needs and personal factors differ. The best way to understand your options and monthly expenses is to shop for healthcare benefits that meet your needs in your area.

How Much Will Medicare Cost in 2024?

Regarding Original Medicare costs, the Centers for Medicare & Medicaid Services (CMS) assesses and calculates these expenses annually. While there is no exact date for releasing this information, CMS has a track record of providing it sometime around September each year. This aligns right before the Medicare Annual Enrollment Period, which takes place every year beginning on October 15.

It’s also worth noting that once the new year is here, you can expect to see different costs for Medicare Advantage and Medigap plans, as private insurance carriers provide these. Furthermore, though provided by private carriers, Medicare Part D, as mentioned above, some factors can make these premiums vary. As of this writing, CMS believes that Part D premiums will decrease in 2024, but it has yet to be confirmed.

How to Find Out More About Medicare Costs in 2023

It is essential to understand how much Medicare costs in 2023 so you can budget for your healthcare. No matter what stage of life you’re in, covering your health expenses shouldn’t be a hassle. Let us handle it for you. Call us to learn more about your Medicare costs and all the coverage options available.

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Sources:

MedicareFAQ is dedicated to providing you with authentic and trustworthy Medicare information. We have strict sourcing guidelines and work diligently to serve our readers with accurate and up-to-date content.

  1. Medicare Costs at a Glance, Medicare. Accessed August 2023.
    https://www.medicare.gov/your-medicare-costs/medicare-costs-at-a-glance
  2. 2023 Medicare Costs, Medicare. Accessed August 2023.
    https://www.medicare.gov/Pubs/pdf/11579-medicare-costs.pdf
  3. What Does Medicare Cost, Medicare. Accessed August 2023.
    https://www.medicare.gov/basics/get-started-with-medicare/medicare-basics/what-does-medicare-cost
  4. 2023 Medicare Parts A & B Premiums and Deductibles 2023 Medicare Part D Income-Related Monthly Adjustment Amounts, CMS. Accessed August 2023.
    https://www.cms.gov/newsroom/fact-sheets/2023-medicare-parts-b-premiums-and-deductibles-2023-medicare-part-d-income-related-monthly

Autumn Oberkehr

Autumn Oberkehr is a Content Strategist at Elite Insurance Partners. With a Bachelor’s degree in journalism from Rutgers University, she has a strong background in SEO, fact-checking research, and health/wellness writing.

2 thoughts on “How Much Does Medicare Cost in 2023?

  1. My father is a veteran and goes to the VA for all his medical needs. Does he still have to pay for Medicare part B. He has dental, vision with his VA benefits and it covers his medications too.

    1. Hi Denise, Part B doesn’t include dental, vision, or prescription drug coverage. It is outpatient insurance that your father can use at civilian facilities. We recommend he sign up for Part B, or he could incur a late enrollment penalty because VA benefits are not creditable for Medicare and are only accepted at VA facilities. He can have VA benefits at the same time as Medicare to cover services at a VA facility and everything else for which he currently uses the coverage.

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