Projected Medicare Basic Part D Average Premium for 2023 Announced

In a recent press release, the Centers for Medicare and Medicaid Services (CMS), announced that the average basic monthly premium for standard Medicare Part D coverage is predicted to be nearly $31.50 in 2023, a reduction of 1.8% from $32.08 in 2022.

Annually, CMS releases the projected average basic monthly Part D premium—calculated based on plan bids submitted to CMS—to help beneficiaries understand overall Part D premium trends before Medicare Open Enrollment, when they can select from plan options for the upcoming benefit year.

The Medicare Part D program helps individuals with Medicare pay for both brand-name and generic prescription drugs. Part D remains one of Medicare’s most popular programs, with more than 49 million Medicare beneficiaries enrolled for prescription drug coverage. CMS continues to evaluate modifications to the Part D program thoroughly, and engages with stakeholders to recognize opportunities for improvements, especially for decreasing costs.

CMS is also releasing additional information—such as the Part D national average monthly bid amount—to help Part D plan sponsors finalize their premiums and prepare for Medicare Open Enrollment. Medicare Open Enrollment for coverage beginning January 1, 2023 will run from October 15 to December 7, 2022. CMS anticipates releasing the 2023 premium and cost-sharing information for 2023 Medicare Advantage and Part D plans in September 2022.

For more information on the Part D national average monthly bid amount, the Part D regional low-income premium subsidy amounts, the de minimis amount, the Medicare Advantage employer group waiver plan regional payment rates, and the Medicare Advantage regional preferred provider organization benchmarks, please visit: https://www.cms.gov/Medicare/Health-Plans/MedicareAdvtgSpecRateStats/Ratebooks-and-Supporting-Data.html.