Cover Story

Medicare Open Enrollment for 2023

Reviewing your information can save you money and hassle.

WRITTEN BY JOHN FERRARI

In this ever-changing world, it’s nice some traditions remain the same year after year—like Medicare’s annual Open Enrollment Period. Each year, the Open Enrollment Period runs from October 15 to December 7. During this period you can join, switch or drop a Medicare health plan or Medicare Advantage plan. You can change from Original Medicare (Parts A and B) to a Medicare Advantage plan (Part C) or switch from

Medicare Advantage back to Original Medicare. You can also join, switch or drop Medicare drug coverage plans (Part D). Any changes you make take effect January 1.

There is a separate enrollment period just for Medicare Advantage, from January 1 through March 31. During this period, you can switch between Advantage plans or end your Advantage coverage and return to Original Medicare. However, during this period you cannot switch from Original Medicare to a Medicare Advantage plan.

It’s a good idea to review your Medicare options every few years, or when your medical or financial circumstances change.

Additionally, some life changes trigger Special Enrollment Periods—for example, when you lose your current coverage or become eligible for Medi-Cal, move to a new coverage area, or move into or out of a skilled nursing facility, long-term care or similar facility.

If you are already enrolled in Medicare, you should receive the 2023 Medicare and You handbook in late September or early October. It’s also available online at medicare.gov/medicare-andyou. Additionally, in late September you should receive a separate notice detailing how your plans will change in the upcoming year.

In December you’ll also receive a letter detailing both your Social Security cost-of-living adjustment and your Medicare Part B premium costs for the upcoming year—and this is where a little knowledge could save you money. The government determines your Part B Income-Related Monthly Adjustment Amount (IRMAA), if any, based on a two-year lookback at your MAGI. The acronyms are explained in the Social Security Administration’s Medicare Costs sheet.

MAGI is your Modified Adjusted Gross Income; that is, it’s the adjusted gross income on your taxes plus a few other sources of nontaxable income, such as income from bond funds. So your MAGI may be higher than your AGI. The two-year lookback means each year the government looks at your income from two years ago to calculate your MAGI, and that’s the number used to determine your Part B premium for the next year.

In 2022, if your 2020 MAGI is $91,000 or less filing separately or $182,000 filing jointly, you pay only the standard Part B premium of $170.10. However, if your MAGI is over that limit, you also pay an IRMAA. The IRMAA can raise your Part B premium significantly. For example, if your 2020 MAGI is between $170,000 and $500,000 filing separately or between $340,000 and $750,000 filing jointly, your total Part B premium is $544.30.

If you experience a qualifying life-changing event and your income decreased in the past two years, you can request an IRMAA reduction. Qualifying life-changing events include marriage and divorce, death of a spouse, work stoppage or reduction, and loss of income-producing property or pension income. The form to request an IRMAA reduction is SSA-44, “Medicare Income-Related Monthly Adjustment Amount – Life-Changing Event.”

“I can only imagine hundreds of thousands of people are still paying IRMAA when they don’t have to,” muses licensed health insurance agent Vince Kelly.

So should you gather your colored pens and highlighters to review your coverage and the changes for the upcoming year? Not necessarily, Kelly says. “A lot can change in five years, but year to year? Not so much. You should go over your Medicare options every few years or when your medical or financial circumstances change.”

Open enrollment is a good time to consider switching from a Medicare supplement plan, or Medigap, to an HMO—especially as you age, Kelly says, because Medigap premiums increase each year. “At age 65,” he explains, “a really good supplement plan may cost $130 per month, but by the time you reach 75, that premium has risen to $250 each month.”

One way to help lower Medicare costs is to consider insurance companies that offer a Medicare Part B premium reduction. “These are incentives companies offer to entice people to sign up with them,” Kelly says. “A Part B reduction gives consumers, say, a $125 monthly credit toward the $170 monthly cost of Part B. That reduction may be offset by higher deductibles or fees on some items, but they’re often a good deal if the higher deductibles or fees apply only to medications you don’t need or procedures you won’t have.”

And there are a few things you should check every year, like your Medicare Advantage insurance card. “You should ensure your insurance ID card has your name—with no misspellings—and lists both your primary care physician and correct medical group name, for example Torrance Memorial IPA,” Kelly says. “Primary care physicians can move or retire. If that happens, listing your medical group on your insurance card will make it easier for you to continue receiving care from the same group.” •

Take control of your Medicare Open Enrollment opportunities for next year by paying close attention to your options.