Medicare's Open Enrollment Period — which runs from October 15 through December 7 — is your annual opportunity to switch your current Medicare health and prescription drug plans to ones that better suit your needs. Just in time for Open Enrollment, 2023 Medicare premiums, deductibles, and other costs have been announced, and surprisingly, some of these costs are lower than they were last year.
What to consider
Start by reviewing any materials your plan has sent you. Look at the coverage offered, the costs, and the network of providers, which may be different than last year. Maybe your health has changed, or you anticipate needing medical care, or new or pricier prescription drugs. If your current plan doesn't meet your health-care needs or fit your budget, you can make changes. But if you're satisfied with what you currently have, you don't need to do anything. The coverage you have will continue.
During Open Enrollment, you can:
- Switch from Original Medicare to a Medicare Advantage Plan
- Switch from a Medicare Advantage Plan to Original Medicare
- Change from one Medicare Advantage Plan to a different Medicare Advantage Plan
- Change from a Medicare Advantage Plan that offers prescription drug coverage to a Medicare Advantage Plan that doesn't offer prescription drug coverage
- Switch from a Medicare Advantage Plan that doesn't offer prescription drug coverage to a Medicare Advantage Plan that does offer prescription drug coverage
- Join a Medicare prescription drug plan (Part D)
- Switch from one Part D plan to another Part D plan
- Drop your Part D coverage altogether
Any changes made during Open Enrollment are effective as of January 1, 2023.
Medicare Part B (Medical Insurance) costs for 2023
Most people with Medicare who receive Social Security benefits will pay the standard monthly Part B premium of $164.90 in 2023. This premium is $5.20 lower than it was in 2022 due to lower-than-projected spending for a new drug, Aduhelm, and other Part B items and services. 1
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People with higher incomes may also pay a higher premium for a Medicare Part D prescription drug plan, because an IRMAA will be added to the Part D basic premium based on the same income limits in the table above. Part D premiums vary, but the average basic monthly premium for 2023 is projected to be $31.50 (down from $32.08 in 2022).
People with Medicare Part B must also satisfy an annual deductible before Original Medicare starts to pay. For 2023, this deductible is $226 (down from $233 in 2022).
*This premium applies to a new benefit that extends coverage for immunosuppressive drugs for people who qualify for Medicare coverage due to end-stage renal disease. Prior to 2023, Medicare coverage, including immunosuppressive drug coverage, ended 36 months after a successful kidney transplant. Beginning January 1, 2023, Medicare will offer a new benefit that will help continue to pay for immunosuppressive drugs beyond 36 months for people who don't have other health coverage. It does not cover other items or services. Rates shown apply to people who file individual or joint tax returns. Premiums for beneficiaries filing as married filing separately are different.
Medicare Part A (Hospital Insurance) costs for 2023
- Part A deductible for inpatient hospitalization: $1,600 per benefit period (up from $1,556 in 2022)
- Part A premium for those who need to buy coverage: up to $506 per month (up from $499 in 2022) — most people don't pay a premium for Medicare Part A
- Part A coinsurance: $400 per day for days 61 through 90, and $800 per 'lifetime reserve day' after day 90, up to a 60-day lifetime maximum (up from $389 and $778 in 2022)
- Part A skilled nursing facility coinsurance: $200 for days 21 through 100 for each benefit period (up from $194.50 in 2022)
1) The Centers for Medicare & Medicaid Services, 2022
How does Exelon's separation process into RemainCo and SpinCo impact the retirement benefits for employees in both segments, and what should employees at Exelon consider regarding their retirement planning in light of this structural change?
Exelon’s Separation into RemainCo and SpinCo: The separation into RemainCo and SpinCo may result in different benefits structures for employees, with RemainCo focusing on regulated utilities and SpinCo on competitive energy generation. Employees should evaluate how their specific retirement benefits, such as pensions and 401(k) plans, may change or be restructured under the new entities. Employees need to consider the impact of this change on their long-term retirement planning, especially with regard to how the corporate shift may affect contributions, vesting, and retirement payouts.
In what ways can Exelon employees leverage the Employee Savings Plan to maximize their retirement savings, and what specific features of the plan should employees be aware of to ensure they are making the most of their contributions?
Maximizing Retirement Savings through the Employee Savings Plan: Exelon’s Employee Savings Plan offers tax-advantaged retirement savings with employer matching contributions. Employees should be aware of contribution limits, matching percentages, and vesting schedules to make the most of the plan. Additionally, employees should consider automatic enrollment features, target-date funds, and the availability of Roth contributions, ensuring they optimize their retirement savings through strategic contribution increases over time.
What retirement resources does Exelon provide to assist employees in understanding their pension options, and how does the company's support aim to facilitate a smooth transition into retirement?
Pension Options Resources: Exelon provides resources like retirement planning tools, financial counseling, and access to benefits specialists to help employees understand their pension options. These resources are designed to assist employees in making informed decisions regarding payout options such as lump sums versus annuities. The company’s goal is to help employees transition smoothly into retirement by offering educational sessions and personalized guidance on maximizing their benefits.
Can you elaborate on the diversity, equity, and inclusion efforts at Exelon, particularly how these initiatives impact the workplace environment for employees approaching retirement, and what specific policies or programs are in place to support them?
Diversity, Equity, and Inclusion (DEI) Efforts: Exelon's DEI initiatives positively impact employees approaching retirement by fostering an inclusive environment where employees from diverse backgrounds are supported in planning for their future. Policies such as anti-age discrimination and flexible working arrangements help ensure that older employees can transition smoothly into retirement while still contributing meaningfully in their final working years(Exelon_Corporation_Febr…).
How can Exelon employees evaluate their nonqualified deferred compensation options as they near retirement, and what implications should they consider regarding taxes and withdrawal strategies?
Evaluating Nonqualified Deferred Compensation: Exelon employees nearing retirement should carefully evaluate their nonqualified deferred compensation options, focusing on timing withdrawals to minimize tax liabilities. These plans are often subject to different tax treatments, and employees should consider potential penalties for early withdrawal and strategize around deferral and distribution schedules to optimize their retirement income.
What role does Exelon’s commitment to ESG principles play in its employee benefits structure, and how might changes in this area influence retirement planning for employees at Exelon?
ESG Principles and Employee Benefits: Exelon’s commitment to Environmental, Social, and Governance (ESG) principles influences its benefits structure by promoting sustainable and responsible practices. Employees may see continued enhancements in green investment options in their retirement plans, and changes to benefits programs may reflect a stronger focus on social responsibility and long-term sustainability, which could affect their retirement planning strategies(Exelon_Corporation_Febr…).
How can employees at Exelon access information about their total compensation packages, including retirement benefits, and what steps should they take to ensure they are maximizing their overall compensation as they approach retirement?
Accessing Total Compensation Information: Exelon employees can access information about their total compensation packages, including retirement benefits, through the company’s HR portal and benefits department. To ensure they are maximizing their compensation as they approach retirement, employees should regularly review their pension, 401(k) contributions, and healthcare benefits, seeking advice from the company’s financial planners or HR representatives(Exelon_Corporation_Febr…).
What constitutes the normal retirement age at Exelon, and how do retirement benefits adjust for employees who retire earlier or later than this age?
Normal Retirement Age and Early/Late Retirement: Exelon’s normal retirement age typically aligns with the age for full pension eligibility, which could be 65 or 67 depending on the plan. Employees who retire earlier may face reduced pension benefits, while those who delay retirement could receive enhanced payouts. It’s crucial for employees to understand how their specific retirement age affects their pension formula(Exelon_Corporation_Febr…).
How can Exelon employees provide feedback on employee benefits during the consultation process, especially those related to retirement, and what channels are available for them to voice their concerns or suggestions?
Providing Feedback on Retirement Benefits: Exelon encourages employees to provide feedback on benefits through regular surveys, town hall meetings, and direct consultations with the HR department. Employees can voice their concerns or suggestions regarding retirement plans during open enrollment periods or scheduled consultations with benefits specialists(Exelon_Corporation_Febr…).
What is the best way for employees to contact Exelon regarding questions about their retirement benefits and other related topics, and which resources or personnel should they turn to for the most accurate and reliable information?
Contacting Exelon for Retirement Questions: Employees with questions about retirement benefits can contact Exelon’s HR department, use the company’s dedicated benefits hotline, or access retirement planning resources on the company’s internal portal. For specific inquiries, employees may also reach out to benefits counselors or attend company-provided retirement planning seminars(Exelon_Corporation_Febr…).
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