Inflation is at 8.3%, medical costs are up 5.4%, the average hospital stay for Medicare patients is $13,600, and the latest estimate says people age 65 will save 315,000 during their retirement years US dollars will pay for medical care.
So what’s the good news about medical costs for retirees? For the first time in more than a decade, your Medicare Part B payments will decrease in 2023.
If you need help navigating Medicare Part B payments and how those payments affect your overall financial picture, you should consider contacting a financial advisor.
How big is the cut from Medicare Part B?
Even though gas, groceries and rent are too high, Part B recipients pay $5.20 less per month, which is an annual premium saving of $62.40. In addition, the annual Part B deductible will also decrease slightly, decreasing by $7 to $226.
The lower interest rates were announced at a recent event at President Joe Biden’s White House.
“That’s a fee you pay on Medicare to cover your doctor visits,” Biden said. “This fee has been increasing for years. Now it will set for the first time in more than a decade. And millions of seniors and people with disabilities on Medicare means more money in their pockets while still getting the care they need.”
Part B is one of several aspects of Medicare available to Americans age 65 and older. Part A includes inpatient care in hospitals, care provided by qualified nursing facilities, hospice care and home nursing. Part D covers some prescription drug costs, including many shots and vaccines).
According to the Medicare.gov website, Medicare Part B covers:
Medical and other healthcare provider services
Durable medical equipment (such as wheelchairs, walkers, hospital beds and other equipment).
Many preventive services (such as check-ups, vaccinations or vaccinations and annual “wellness” visits
Additional Medicare cost reductions for 2023
Premiums for Medicare’s Part D drug coverage are also expected to decrease, with the average monthly base premium for standard Part D coverage expected to be $31.50, compared to $32.08 in 2022.
The story goes on
With Part C — better known as Medicare Advantage — seniors can expect additional savings in 2023, according to the Centers for Medicare & Medicaid Services. This part of Medicare includes the purchase of approved coverage plans from private insurers as an alternative to Medicare that cover the services offered under Part A, Part B, and usually Part D.
According to the centers, the projected 2023 premium for Medicare Advantage plans is expected to decrease by 8% from $19.52 per month to $18 per month beginning in 2022. The lower premium for 2023 comes after an earlier 10% cut in average premiums from 2021.
When is Medicare Open Enrollment for 2023?
The Medicare annual open enrollment plan runs from October 15 through December 7, when eligible seniors can sort through all of their 2023 coverage options at Medicare.gov. Seniors can enroll in Medicare three months before their 65th birthday, although people with a disability, end-stage kidney disease, or ALS (Lou Gehrig’s disease) may be eligible to enroll earlier.
Amid rampant inflation and other economic challenges, there’s good news for retirees: Medicare Part B costs are falling for the first time in a decade.
Tips for Retirement
You can prepare yourself for retirement, but there’s a lot to consider, especially when you consider that so many people have been caught unawares by these rising medical costs. You can also work with a financial advisor who can properly plan for your concerns about your upcoming retirement. SmartAsset’s free tool puts you in touch with up to three financial advisors operating in your area and you can interview your matching advisors for free to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, start now.
If you’re trying to find the right balance in your retirement portfolio, consider using SmartAsset’s free asset allocation calculator to help you find the right mix to meet your financial goals.
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