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Hello, friends! If you're 64 years old or older and still punching the clock—you've got one eye on retirement and the other on your healthcare needs. Around here, there are many of you that are at Eastman, Ballad, or one of our local school systems and trying to decide if you can retire or not. Another group of you are self employed and own a business, this creates a lot of flexibility. This guide for working seniors will help you navigate the Medicare issue to help you make a better decision. Today, I want to bring your attention to some essential updates on Medicare for 2023 and shortly 2024. As you prepare for the next chapter in your life, this info could help you make more informed decisions about your healthcare. So, let's dive in!
Medicare Part B: Lower Premiums and Deductibles for 2023 in Tennessee
Good news! Medicare Part B, which covers outpatient hospital services, physician visits, and much more, will cost you a bit less next year. The standard monthly premium will go down from $170.10 in 2022 to $164.90 in 2023. That's a $5.20 saving each month!
The annual deductible is also getting a haircut, decreasing from $233 in 2022 to $226 in 2023. This price reduction is mainly due to less-than-expected spending on a new drug called Aduhelm, among other factors.
Special Coverage for Kidney Transplant Recipients
Starting in 2023, if you're three years post-kidney transplant and losing full Medicare coverage, you can opt to continue Part B coverage for immunosuppressive drugs at a monthly premium of $97.10.
Open Enrollment and Medicare Savings Programs
Remember to mark your calendar for Medicare Open Enrollment, running from October 15 to December 7, 2023. This is the time to compare and choose from Original Medicare, Medicare Advantage, and Part D prescription drug plans. Prices and benefits change, so review your options to find the one that fits you best.
If you're struggling with healthcare costs, you might be eligible for a Medicare Savings Program (MSP). These programs can cover your Medicare premiums and possibly your deductibles and copayments too. Surprisingly, only half of those eligible for MSPs are currently enrolled. To learn more, visit Medicare Savings Programs.
Part B and D Income-Related Premium Adjustments
High-income beneficiaries will pay different premiums based on their income. Both Part B and Part D premiums are subject to these adjustments. For example, in 2023, individuals earning less than $97,000 will pay the standard Part B premium of $164.90, while those earning between $97,000 and $123,000 will pay $230.80. The same goes for Part D, with the income-related monthly adjustment amounts ranging from $0 to $76.40. If you are married, you can make up to $194,000 before you start paying the IRMAA.
Here is where you need to pay attention. If you are in Kingsport and you are retiring from Eastman, if you get a lump sum buy out, or something similar to that if you work for Ballad or even Food City, you may want to wait a little bit before you take Medicare Part B. The reason for this is that you may pay more for Medicare Part B and a Medicare Supplement than you will if you extend COBRA for a bit. Please check with a knowledgeable Medicare agent in Kingsport or Johnson City - like us 😉 - so that you do not miss your open enrollment deadline.
Medicare Part A: Premiums and Deductibles for Inpatient Services
Most of you likely won't pay a premium for Part A, which covers inpatient hospital stays and similar services. However, the inpatient hospital deductible is rising to $1,600 in 2023, up from $1,556 in 2022. So keep that in mind in case you need to be admitted for treatment.
For those who do pay a Part A premium (likely because you have fewer than 40 quarters of Medicare-covered employment), the monthly rate will be either $278 or $506, depending on your situation. These rates are slightly up from last year.
Healthcare is a critical piece of the retirement puzzle, especially if you're still working past 64 in Johnson City, Kingsport, or Bristol. Understanding these changes can help you plan better for the year ahead. So keep these updates in mind and remember to participate in the Open Enrollment period to ensure you're making the most out of your Medicare benefits.
For more detailed information, you can refer to the official notices:
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