America's Benefit Specialist November 2022

MEDICARE MATTERS

they have at least 40 quarters of Medi care-covered employment. The Medicare Part A inpatient hospital deductible that beneficiaries pay if admitted to the hospital will be $1,600 in 2023, an increase of $44 from $1,556 in 2022. The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period. In 2023, beneficia ries must pay a coinsurance amount of $400 per day for the 61st through 90th day of a hospitalization ($389 in 2022) in a benefit period and $800 per day for lifetime reserve days ($778 in 2022). For beneficiaries in skilled nursing facilities, the daily coinsur ance for days 21 through 100 of extended care services in a benefit period will be $200.00 in 2023 ($194.50 in 2022). Enrollees age 65 and over who have fewer than 40 quarters of coverage and certain persons with disabilities pay a monthly

premium in order to voluntarily enroll in Medicare Part A. Individuals who had at least 30 quarters of coverage or were mar ried to someone with at least 30 quarters of coverage may buy into Part A at a reduced monthly premium rate, which will be $278 in 2023, a four-dollar increase from 2022. Certain uninsured aged individuals who have less than 30 quarters of coverage and certain individuals with disabilities who have exhausted other entitlement will pay the full premium, which will be $506 a month in 2023, a seven-dollar increase from 2022. Since 2011, higher income beneficiaries’ Part D monthly premiums are based on in come. These income-related monthly adjust ment amounts affect roughly eight percent of people with Medicare Part D. These indi viduals will pay the income-related monthly adjustment amount in addition to their Part D premium. Part D premiums vary

from plan to plan and roughly two-thirds of beneficiaries pay premiums directly to the plan, while the remaining beneficiaries have their premiums deducted from their Social Security benefit checks. Regardless of how a beneficiary pays their Part D premium, the Part D income-related monthly adjustment amounts are deducted from Social Security benefit checks or paid directly to Medicare. The 2023 Part D income-related monthly adjustment amounts for high-income ben eficiaries are shown in a chart at www.cms. gov/newsroom/fact-sheets/2023-medicare parts-b-premiums-and-deductibles-2023 medicare-part-d-income-related-monthly, along with the premiums for high-income beneficiaries who are married and lived with their spouse at any time during the taxable year but file a separate return.

MILLIMAN: A HEALTHY 65-YEAR-OLD WILL SPEND BETWEEN $137,000 AND $300,000 ON HEALTHCARE COSTS IN RETIREMENT

(standard benefit) is projected to spend $264,000 on healthcare expenses in his remaining lifetime. A woman retiring at age 65 will spend $158,000 on healthcare expenses over the course of her lifetime if covered by an MAPD plan. That cost increases to $300,000 with Original Medicare plus Medigap (Plan G) and Part D (standard benefit) coverage. Higher healthcare costs for women are largely the result of longer life expectancy when compared to men. The Retiree Health Cost Index includes key differ ences in coverage between Medigap and Medicare Advantage, along with a look at how healthcare costs might vary based on the state a retiree lives in and when the person retires. To view the complete Retiree Health Cost Index, go to www.milliman.com/ en/insight/retirement-planning-health-cost-index.

Milliman Inc. has re leased its 2022 Retiree Health Cost Index, which projects the total premi ums and out-of-pocket expenses a healthy 65-year-old can expect to spend on medical and

prescription drug costs in retirement. The report also looks at cost variations across sex, geography and the two most common coverage options for Medi care-eligible retirees. In 2022, Milliman projects a healthy 65-year-old man with a Medicare Advantage plus Part D plan will spend $137,000 in healthcare expenses in his remaining lifetime. The same retiree covered by Original Medicare with Medigap (Plan G) and Part D

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