Dive Brief:
- The monthly premium and annual deductible for Medicare Part B coverage will decline in 2023, CMS announced Tuesday. Medicare Part B covers physician, outpatient and home health services.
- The standard monthly premium for Part B enrollees will be $164.90 for 2023, down $5.20 from 2022. The annual deductible is $226 in 2023, a decrease of $7. Lower-than-expected spending on the Alzheimer's drug Aduhelm was a factor in reducing the premium, CMS said.
- In a speech at the White House, President Joe Biden said the Medicare premium decrease is the first in more than a decade for the program. The president also touted provisions in the Inflation Reduction Act, signed into law last month, that will help lower prescription drug costs.
Dive Insight:
Medicare Part B premiums jumped 15% in 2022 as CMS braced for higher expected costs to cover use of Biogen's pricey and controversial Alzheimer's drug Aduhelm, which won FDA approval last year despite conflicting data on its effectiveness.
Spending on the intravenous treatment ultimately was lower than anticipated, CMS said. Its use was limited to patients in a clinical trial, and Biogen scaled back commercial support for the drug amid heavy pushback from doctors and insurers.
The lower spending on both Aduhelm and other Part B items resulted in much larger Part B reserves, which can be used to limit future premium increases, CMS said. The decrease in the 2023 Part B premium follows the agency's recommendation in a May report that excess reserves be passed along to Part B enrollees.
Part B premiums will be higher for Medicare beneficiaries with incomes greater than $97,000, which CMS said affects about 7% of enrollees.
Part A premiums and deductibles will be going up in 2023, CMS said. About 99% of Medicare beneficiaries do not have a Part A premium because they have at least 40 quarters of Medicare-covered employment, according to the agency.
Part A covers inpatient hospital and rehabilitation, skilled nursing, hospice and some home health care services. The Part A deductible for inpatient hospital services will increase by $44 to $1,600, and the monthly premium will rise by $7 to $506.