What Is The 2023 Medicare Part A Deductible?
The amount of the Medicare Part A Hospital deductible for 2023 is vital because other numbers are based upon it. The Part Hospital A deductible in 2023 is more than just a dollar amount. The Part A deductible for Medicare drives the other copays, coinsurance, and deductibles.
Part A not only covers inpatient hospital stays. Medicare Part A and the deductible for 2023 include Skill Nursing Facilities, Home Healthcare, and even Hospice. These services have their own particular copays.
Payroll Taxes Pay For Medicare Part A
Payroll taxes support Medicare Part A. Each pay period, the taxes deducted from your check go into a special trust fund to cover Part A expenses. The payroll tax (or FICA) is currently 1.45% of your gross wages. There is no limit to the 1.45% tax. In other words, your entire income, even if it is $400,000, is subject to the 1.45% tax.
While the revenue from payroll taxes to the federal government is enormous as an absolute number, it is finite and limited in relation to the costs that Medicare Part A must support. Consequently, deductibles, coinsurance, and copays for the hospital, skilled nursing, home health care, and hospice are designed to offset any shortfall in rising expenses and insufficient tax revenue.
Medicare Part A Increases In 2023 Increase Supplements
Part A claims generally are more considerable than Part B claims. When the Center for Medicare & Medicaid Services (CMS) increases the deductibles and copays for Part A, the insurance companies need to cover more with the Medigap and Medicare Advantage policies. Their costs and risk go up in relation to Medicare’s higher deductibles and copays. They pass those costs on to the consumer through increased premiums and larger copays.
How Much Is Medicare Part A Deductible?
The Medicare Part A deductible for 2022 was $1,556 per benefit period. The new Medicare Part A deductible for 2023 is $1,600 per benefit period, which is a 3% increase.
The key to Medicare Part A deductible is the benefit period. The benefit period restarts after 60 days without inpatient care. There is no limit to the number of benefit periods a patient may experience in a year. Consequently, the insurance company that covers this risk has almost unlimited liability.
After the Part A deductible is met during the benefit period, the patient has 60 days at no cost in the hospital. If the patient remains as an inpatient on day 61, his copay is $400 daily from day 61 to 90 for 2023. As you can imagine, the 60-day stay is more than sufficient for most people.
Lifetime Reserve Days
However, for those who need even more inpatient hospital care, there is a one-time amount of 60 lifetime reserve days. The patient may draw upon this pool of days when he has exceeded the initial 90 days. The accompanying copay for these 60 lifetime reserve days is $800 per day. Once these days are exhausted, then you are responsible for all costs on day 150 and beyond that year.
These numbers are strictly Medicare Part A deductible, and copays for 2023 without a Medicare Supplement or Medicare Advantage plan included.
Medicare Part A Include Skilled Nursing Facilities
Medicare Part A for 2023 includes skilled nursing facilities. Skilled nursing is required when the level of care is more than can be provided by home health care visits or a patient going to a facility several times a week. Skilled nursing is for intense rehabilitation requiring several hours of care per day.
The Medicare Part A deductible for 2023 is zero for the first twenty days in the skilled nursing facility, but from day 21 to day 100, the copay increased from $194.50 to $200 daily in 2023.
Medicare Supplements fill in the gap for skilled nursing facility care. Medicare Advantage plans provide smaller daily copays, but the cost of a supplement or advantage plan increases when more of the burden is passed on to the plan.
Home Healthcare & Hospice Go With Part A
Home health care is also part of Medicare Part A. It remains the same with zero copays, and durable medical equipment remains at 20% coinsurance.
While these numbers remain the same, inflation affects the amount the insurance company must make up to cover the 20% of durable medical equipment like walkers, wheelchairs, hospital beds, CPAP machines, oxygen tanks, and other medical equipment. More liability means higher premiums in the long run for Medicare Supplements.
Medicare Part A includes hospice. The Medicare Part A for hospice in 2023 is the same as well. Medicare almost completely covers hospice. There are some minimal copays for medications.
At the end of each year, the Center for Medicare & Medicaid Services (CMS) releases the new numbers for Medicare Part A and Part B. The insurance companies follow suit with their adjustments over the course of the year. Understanding the changes and how all the numbers work together gives you a better appreciation for how Medicare works and enables you to anticipate increases and plan your healthcare budget. You can adjust your strategy for your Medicare Supplement, Medicare Advantage plan, or Medicare Part D prescription drug plan when you know how it works. The first number to learn is the Medicare Part A deductible for 2023.