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Navigating the Financial Landscape: Medicare Cost Evolution from 2022 to 2023

Market Data
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May 14, 2023
Intro

Medicare costs are a critical concern for millions of beneficiaries. Between CY 2022 and CY 2023, these costs have undergone notable changes. This article provides a data-driven exploration of these shifts, focusing on Medicare Parts A, B, and D, and what they mean for beneficiaries and healthcare providers alike. While some of this data explores historical changes, it's important to note that these trends will no doubt influence future changes into 2024 as well.

As we compare Medicare costs between CY 2022 and CY 2023, several key trends become apparent. With the cost data depicted in our most recent chart, it is easy to see the changes in the Medicare healthcare coverage financial landscape.

Let's begin with Medicare Part A. Beneficiaries can anticipate a modest but noticeable increase across the board in CY 2023. The inpatient hospital services deductible will increase from $1,556 to $1,600. Similarly, the daily coinsurance increases to $400, the Long-Term Care (LTR) day coinsurance increases to $800, and the Skilled Nursing Facility (SNF) day coinsurance increases to $200. The premium for Medicare Part A also increases slightly, from $499 to $506.

Medicare Part B presents a different picture. In actuality, the deductible decreases from $233 to $226. However, the average premium decreases from approximately $374.20 (average range: $170.10 - $578.30) to roughly $362.70 (average range: $164.90 - $560.50). This slight reduction in both the deductible and the premium may be welcomed by a number of beneficiaries.

Lastly, Medicare Part D costs are increasing. Maximum deductible increases from $480 to $505, initial coverage limit increases from $4,430 to $4,660, and out-of-pocket maximum increases from $7,050 to $7,400. This indicates that beneficiaries may need to prepare for increased drug costs in CY 2023.

In conclusion, while some Medicare costs decrease (most notably Part B), the general trend is toward higher costs in CY 2023, particularly for beneficiaries of Part A and Part D. These insights highlight the significance of ongoing financial planning for Medicare beneficiaries. Uppercentile will continue to provide the most recent data and insights to assist you in navigating these changes.

COVID-19 Impact In the Data - An Analysis of CMS Program Populations

For Medicare, we observe a steady increase in the average monthly enrollees, with a notable rise in the MA & Other Health Plan Enrollment category. The influx of enrollees into Medicare Advantage plans is indicative of the growing preference for integrated care models that provide additional benefits, such as prescription drug coverage and telehealth services, which have been especially crucial during the pandemic.

In the Medicaid and CHIP populations, the expansion is even more dramatic. There was an upsurge in total enrollees from 2020 to 2021, and this growth continued into 2022. The increase in enrollment is attributed to the economic impact of the pandemic, which has left many individuals and families in need of the vital safety net that Medicaid and CHIP provide.

It's important to note that these data not only reflect the historical changes in CMS program enrollment during the pandemic years, but also indicate potential trends that may continue to shape the healthcare landscape in the post-pandemic era.

Additional Notes:

  1. All population numbers are in millions and may not add due to rounding.
  2. The data for CY 2022 is preliminary and subject to change.
  3. The total counts represent the number of Medicaid and CHIP beneficiaries with comprehensive coverage. The categories are sourced from data that include beneficiaries with non-comprehensive coverage and do not sum to the total counts.
  4. Data for some categories are not yet available.
  5. The 2020 and 2021 Medicaid data reported in this table are from the Medicaid & CHIP scorecard. The 2022 Medicaid data are from the State Medicaid and CHIP Applications Eligibility Determinations, and Enrollment Data.
  6. MA refers to Medicare Advantage.
  7. MA PD refers to Medicare Advantage Prescription Drug Plan.
  8. PDP stands for Prescription Drug Plan.
  9. CHIP stands for Children's Health Insurance Program.

Source: CMS/Office of Enterprise Data & Analytics/Centers for Medicaid and CHIP Services.

Need a deeper dive or a more specific breakdown? Contact us at Uppercentile for tailored insights and bespoke solutions. Visit uppercentile.com/contact to get started.

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