Matt Feret, author of the book, Prepare for Medicare: The Insider’s Guide™ To Buying Medicare Insurance.
Medicare enrollment season is from Oct 15 – Dec. 7, 2022
What are the different parts of Medicare?
The original Medicare coverage is now referred to as Medicare Part A and Medicare Part B.
- Medicare part A – provides coverage for when you are hospitalized. For most retirees, there is no fee for this providing you or your spouse worked for at least 10 year.
- Medicare part B – provides medical coverage such as doctor visits, outpatient procedures and durable medical equipment. Beneficiaries pay a monthly premium for part B, normally taken right out of their Social Security check. The amount paid for part B is based on your income, but for most people, it is $170.10 per month.
- Medicare Supplements (also known as MediGap) – is a supplemental plan that helps extend coverage and fill in the gaps and deductibles of Medicare part A and B. Monthly premiums for Medicare supplements can vary.
- Medicare part D – provides prescription drug coverage (which varies in which drugs it covers and how much it covers for each drug). The monthly premium for Part D varies and ranges from $8 per month to about $60 per month.
- Medicare Part C – also known as Medicare Advantage – a plan that replaces your Medicare coverage. It must provide the same level of coverage as Medicare Part A & B, and often includes coverage not generally associated with Medicare – such as dental care or eye care. It may or may not include prescription drug benefits, so depending on the plan, you may also need Medicare Part D. The premiums for Medixare part C can vary significantly – from $0 to more than $100 per month.
What are some of the key changes Medicare recipients can expect?
There are two important cost-related changes that Medicare recipients should be aware of this enrollment season.
First, due to the reduction in a pharmaceutical drug price, Medicare recipients can expect a small, and extremely rare, decrease in their monthly premium. The decrease is small – $5.20 per month, but any decrease is extremely rare, and no doubt welcome.
The other cost-related change that seniors should be aware of is something we call MOOP, which stands for Maximum Out of Pocket expense. This is the maximum amount seniors have to pay out of their pocket. The 2023 Maximum Out Of Pocket for Medicare recipients is $8,300 – a 10% increase over last year.