The question on a lot of minds is: will Medicare Part B premiums be reduced in 2022?
In January, there was talk that Medicare would revisit the big Part B premium jump for 2022. It went from $148.50 per month in 2021 to $170.10 per month in 2022 for most Medicare beneficiaries. Since then, there’s been silence from Medicare.
It’s still possible that those Medicare Part B premiums will be reduced. If they are, we’ll be very happy to make a new video. For now, this video will take you through the 2022 Medicare Part B premium numbers as they stand today, broken down based on your income.
Confused about your Medicare coverage options? Watch our free video: How to Find the Best Medicare Coverage Without Paying More Than You Need To…
Medicare Part B: Outpatient Coverage
Medicare Part B is Medicare outpatient coverage. Even if you worked and paid Medicare taxes for 40 quarters and are eligible for Medicare Part A without having to pay a monthly premium, you still do have to pay a monthly premium for Part B.
Paying Part B Premiums
If you receive Social Security, your Part B monthly premium is automatically deducted from your monthly Social Security.
If you are not receiving Social Security, you will get a bill for your Medicare Part B coverage. You have some options when it comes to paying those Part B premiums. Here’s a link to more information on those: https://www.medicare.gov/your-medicare-costs/pay-part-a-part-b-premiums
Determining Your Part B Premium
Most people pay the standard Part B premium, which in 2022 is $170.10/month.
If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you’ll pay the standard premium amount AND an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.
The chart found here shows how much you will pay based on your income. Please note 2022 IRMAA payments are determined by your Modified Adjusted Gross Income from 2020.
If your income has gone down since 2020, you can appeal your IRMAA payment decision. Here is a link to the form you’ll need to use to file that IRMAA appeal:
https://www.ssa.gov/forms/ssa-44-ext.pdf
There are a couple other potential complications with Part B premiums:
Late Enrollment Penalty
If you didn’t get Medicare Part B when you were first eligible, your monthly premium may go up 10% for each 12-month period you could have had Part B but didn’t sign up.
In most cases, you’ll have to pay this penalty each time you pay your premiums, for as long as you have Part B.
Usually, you don’t pay a late enrollment penalty if you meet certain conditions that allow you to sign up for Part B during a Special Enrollment Period.
Working Past Age 65
One of the most common situations that qualifies for a Special Enrollment Period is leaving a group employer plan to enroll in Medicare Part B. This Special Enrollment Period is for people who continue working past age 65.
If your employer plan has more than 20 covered employees, you can decline Part B when you turn 65 and wait to enroll until you retire and leave your group plan. You will not have to pay the late enrollment penalty.
If you are on a small group employer health plan, you may have to enroll in Part B at age 65, so definitely check with your benefits administrator three to six months before your Medicare eligibility to find out if your group coverage requires you to enroll in Part B at age 65, or if you can safely delay Part B until you leave your group plan.
If you’re concerned about Medicare Part B enrollment timing, please see the video linked here that explains it further or give us a call at 877-312-1414. We can help you understand the Special Enrollment Periods, especially for those who work past age 65.
Low Income Extra Help
If you have low income, you may be able to get help from your state paying your Medicare premiums.
In some cases, Medicare Savings Programs may also pay Medicare Part A (Hospital Insurance) and Medicare Part B deductibles, coinsurance, and copayments if you meet certain conditions.
These get somewhat complicated, so here is a link to more information. https://www.medicare.gov/your-medicare-costs/get-help-paying-costs/medicare-savings-programs
Questions? We Can Help!
If you have questions about your Medicare 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 keep you updated on your Medicare options so you can find the best possible coverage for you!
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