Medicare's annual enrollment period is on the horizon, and the Biden administration announced Thursday that premiums in Medicare Advantage (MA) are set to decrease by nearly 8% next year.
The Centers for Medicare & Medicaid Services (CMS) said the projected average premium in MA for 2023 is $18, down from $19.52 in 2022. In addition, the agency said that more than 1,200 plans will participate in its Value-Based Insurance Design model in the coming year, a program that enables plans to test customized benefits that are designed to better manage diseases and address members' social needs.
CMS previously announced that average premiums in Part D are also set to decline, decreasing by about 2% to $31.50 next year.
Administration officials touted the Inflation Reduction Act as playing a key role in driving down premiums.
“The Inflation Reduction Act will provide much needed financial relief and increase access to affordable drugs,” said CMS Administrator Chiquita Brooks-LaSure. “It is more important than ever for people to review their health care coverage and explore their Medicare options during Open Enrollment this year.”
The law established a $35 cost-sharing limit on a month's supply of covered insulin products as well as some no-cost vaccinations.
Enrollment in MA continues to increase, and CMS said an estimated 31.2 million people will enroll in MA for 2023. The annual enrollment period begins Oct. 15.