The Biden administration is touting a reduction in premiums in 2023 for Medicare Part B as a victory for consumers, but the decrease follows a larger premium increase this year to help cover the spending on a new Alzheimer’s drug.
During a White House Rose Garden press conference, Biden highlighted the reduction in Medicare B premiums during remarks promoting the recently passed Inflation Reduction Act. “Now, for the first time in more than a decade, it’s going to go down,” he said. “And millions of seniors and people with disabilities on Medicare, that means more money in their pockets while still getting the care they need.”
According to the Centers for Medicare & Medicaid Services, the standard monthly premium for Medicare Part B enrollees will be $164.90 for 2023, a decrease of $5.20 from $170.10 in 2022. The annual deductible for all Medicare Part B beneficiaries also will decrease by $7 to $226 in 2023.
However, CMS noted in a news release that the reason for the reduction in Medicare premium is because of lower-than-expected spending on a new drug, Aduhelm, which is used to treat Alzheimer’s. The agency raised Medicare premiums by 14.5% in 2022 due to the cost of Aduhelm and other factors, according to an article in Reuters.
“The 2022 premium included a contingency margin to cover projected Part B spending for a new drug, Aduhelm,” the CMS news release said. “Lower-than-projected spending on both Aduhelm and other Part B items and services resulted in much larger reserves in the Part B account of the Supplementary Medical Insurance (SMI) Trust Fund, which can be used to limit future Part B premium increases.”
Medicare Open Enrollment for 2023 will begin on Oct. 15 and end on Dec. 7.
