The good news – Medicare Part B premiums will be approximately $5.20 lower per month than in 2022. According to the Centers for Medicare & Medicaid Services (CMS), the monthly Part B premium will be $164.90 in 2023 for most beneficiaries compared to the $170.10 premium in 2022.
Medicare Part B covers doctor visits, diagnostic tests and other outpatient services. For the majority of beneficiaries, Part B premiums are deducted from their monthly Social Security check. Combined with the 8.7% Cost of Living Adjustment (COLA), federal retirees covered by Medicare Part B will have a little extra income in 2023.
The Background: Aduhelm Treatments For Alzheimer’s Disease
The 2022 Part B premium increase was in large part due to a highly expensive treatment for Alzheimer’s disease called Aduhelm. At the time, even though CMS hadn’t yet determined whether Medicare would cover the drug, the Medicare Part B premium was increased by the highest dollar amount in Medicare’s history.
Then, in April of 2022, CMS announced Medicare would only cover Aduhelm in certain government-approved clinical trials. By May of 2022, it was announced that this change would lower Medicare Part B premiums in 2023.
Other Changes To Medicare In 2023
In addition to lower premiums for Medicare Part B in 2023, the Part B deductible will decrease to $226 which is $7 less than the 2022 deductible. Another change that will begin mid-2023 — diabetics covered by Medicare who take insulin through a pump will no longer have to pay a deductible. Add to this, under the new Inflation Reduction Act of 2022, cost sharing for insulin will be capped at $35 a month in 2023.
“For federal workers and retirees who regularly pay out-of-pocket for doctors outside of their HMO network, paying for Part B in combination with FEHB has its advantages.”
Do Federal Employees Need Medicare Part B?
Generally, FEHB participants with HMO plans don’t need to join Medicare Part B because their plan covers most of the same medical services. For federal workers and retirees who regularly pay out-of-pocket for doctors outside of their HMO network, paying for Part B in combination with FEHB has its advantages. Once you have Medicare Part B, you can switch to a lower-priced FEHB plan to save on premiums.
When you’re employed, if you’re covered by FEHB and Medicare, your FEHB plan is your primary insurance and will pay costs, first. Once you retire, Medicare becomes your primary insurance and FEHB can fill the role as your secondary “Medigap” coverage. What About Medicare Part A (hospital coverage)? Since it costs you nothing, the OPM.gov website recommends enrolling in Medicare Part A and combining it with your FEHB coverage.
