CMS released the 2022 Medicare Premium and Deductible amounts late on Friday, November 12. There were some larger increases than had been projected earlier in the year.
In this video, we’ll go through the new numbers and how they affect you.
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Medicare Part B Premium
Medicare Part B is coverage for outpatient services.
In 2021, the Part B premium for most people is $148.50 per month. For 2022, that is increasing to $170.10 per month, which is an increase of $21.60 per month.
If you have higher income, a link to the IRMAA charts for both Parts B and D for 2022 are shown here.
Remember, Medicare bases these amounts off your tax returns from two years ago.
Medicare Part B Annual Deductible
The Medicare Part B annual deductible is also increasing from $203 in 2021 to $233 in 2022.
According to CMS, the increases in the 2022 Medicare Part B premium and deductible are due to:
- Rising prices and utilization across the health care system that drive higher premiums year-over-year alongside anticipated increases in the intensity of care provided.
- Congressional action to significantly lower the increase in the 2021 Medicare Part B premium, which resulted in the $3.00 per beneficiary per month increase in the Medicare Part B premium (that would have ended in 2021) being continued through 2025.
- Additional contingency reserves due to the uncertainty regarding the potential use of the Alzheimer’s drug, Aduhelm™, by people with Medicare. In July 2021, CMS began a National Coverage Determination analysis process to determine whether and how Medicare will cover Aduhelm™ and similar drugs used to treat Alzheimer’s disease. As that process is still underway, there is uncertainty regarding the coverage and use of such drugs by Medicare beneficiaries in 2022. While the outcome of the coverage determination is unknown, our projection in no way implies what the coverage determination will be, however, we must plan for the possibility of coverage for this high cost Alzheimer’s drug which could, if covered, result in significantly higher expenditures for the Medicare program.
Medicare Part A Premium and Deductible
Medicare Part A covers inpatient hospital, skilled nursing facility, hospice, inpatient rehabilitation, and some home health care services.
About 99 percent of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment.
The Medicare Part A inpatient hospital deductible that beneficiaries pay if admitted to the hospital will be $1,556 in 2022, an increase of $72 from $1,484 in 2021.
The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period.
In 2022, beneficiaries must pay a coinsurance amount of $389 per day for the 61st through 90th day of a hospitalization ($371 in 2021) in a benefit period and $778 per day for lifetime reserve days ($742 in 2021).
For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $194.50 in 2022 ($185.50 in 2021).
Sadly, these increases diminish or eliminate the increase to Social Security payments for a lot of people for 2022.
The tiny silver lining on this pretty dark cloud is that this information was released with plenty of time left in the Annual Enrollment Period to look at your finances and your health coverage needs, and if these increases are warrant it, change your Medicare Advantage or Part D coverage for 2022 or look at applying for different Medicare Supplement coverage, keeping in mind that Medicare Supplements do not fall under the Annual Enrollment Period.
If you have questions about your Medicare plan coverage, please feel free to give our office a call at 877-312-1414 or schedule a free, no obligation Medicare Plan Consultation.
We’re here to help you navigate the confusing and changing landscape of Medicare options to find the best possible coverage for you.
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