Medicare Part D
2023 Medicare Part D Changes
Starting January 1st, 2023:
- The Part D monthly premium varies by plan.
- For stand-alone Part D prescription drug plans, average basic premiums increased to a projected average premium of $43/month for 2023 (up from $39/month for 2022).*
- In 2022, brand-name drugs cost the enrollee just 25 percent of the plan’s cost.
*It is important to understand that the average basic premium is less than the average enhanced plan premium, so overall average Part D premiums are higher than the average basic premiums.
- Beginning in 2023, under a provision in the Inflation Reduction Act, Part D enrollees will pay no more than $35 per month for covered insulin products in all Part D plans, and will pay no cost sharing for adult vaccinescovered under Part D. Also beginning in 2023, drug manufacturers will be required to pay rebates for drug prices that rise faster than the rate of inflation, which could impact costs for Part D enrollees. The law also adds a hard cap on out-of-pocket drug spending under Part D by eliminating the 5% coinsurance requirement for catastrophic coverage in 2024 and capping out-of-pocket drug spending at $2,000 in 2025, and authorizes the federal government to negotiate drug prices under Medicare, with negotiated prices for 10 Part D drugs first available in 2026.
Medicare Part D is the newest addition to Medicare. Part D is the prescription drug plan. You must be enrolled in Medicare before you can apply for Part D coverage. Most people will pay a monthly premium for this coverage. Everyone with Medicare can get this coverage. It may help you lower prescription drug costs and help protect against higher costs in the future. Private companies provide the coverage. You choose the drug plan (there are many from which to choose) and pay a monthly premium. If you decide not to enroll in a drug plan when you are first eligible, you may have to pay a penalty if you join later.
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