3 Money-Saving Changes Coming to Medicare in 2023

Finally, seniors get some good financial news.

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Key points

• Medicare Part B premiums and deductibles are decreasing slightly for 2023.
• Those with End Stage Renal Disease (ESRD) will receive extended coverage for immunosuppressive drugs under certain conditions.
• Monthly costs will be capped on certain types of insulin beginning in January with more caps coming in July.

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Healthcare has gotten more expensive for everyone over the past few years, and that’s especially hard on seniors who are living on a fixed income and often have more health issues than younger adults. Doing your best to eat well and stay active can help reduce your risk of injury or illness, but you still need health insurance just in case.

Most seniors rely on Medicare, but that brings expenses of its own and it doesn’t cover everything. Fortunately, the government is making a few changes to the program for 2023 that should help seniors save a little. Here are three of the most significant.

1. Medicare Part B costs are decreasing

Original Medicare is composed of Parts A and B. Part A is hospital insurance, which covers inpatient care at hospital and nursing facilities, and most people don’t have to pay any premiums for that. Part B is medical insurance and this covers outpatient medical care, including most doctor visits. There is a deductible and premium for this.

In 2022, most people pay $170.10 per month and have a deductible of $233. But premiums are falling to $164.90 in 2023 and deductibles are dropping to $226. Some high earners will pay more than this, but they too will see their rates fall compared to 2022.

2. More coverage for kidney transplant recipients

Currently, Medicare recipients with End Stage Renal Disease (ESRD) only receive coverage for immunosuppressive drugs for 36 months following a successful kidney transplant. But beginning next year, these drugs are covered beyond 36 months if you have no other healthcare coverage.

You’ll still have to pay your Part B premium and a monthly premium of $97.10 for this coverage. And if you want it to begin right away on Jan. 1, 2023, you must sign up by Dec. 31, 2022. You can do this by contacting the Social Security Administration.

3. Caps on Medicare Part D insulin costs

Beginning Jan. 1, 2023, all Medicare recipients who use Part D-covered insulin will have their monthly out-of-pocket costs capped at $35 for a one-month supply. Those who purchase a 60- or 90-day supply of insulin may pay more per prescription since they’re getting a few months of insulin at a time, but it still shouldn’t exceed $70 for a 60-day supply or $105 for a 90-day supply.

This doesn’t apply to insulin used in traditional insulin pumps, which are covered under Medicare Part B instead of Medicare Part D. However, similar caps will apply to insulin used in these pumps beginning on July 1, 2023.

These changes may not all apply to you, but they’re still worth keeping in mind. Health conditions can arise unexpectedly and it’s always a good idea to know what your insurance does and doesn’t cover. Find some time to review your 2023 Medicare coverage to learn about any additional changes to the program that could affect you.