YOUR COSTS FOR MEDICARE ARE INCREASING FOR 2022
The standard premium for Medicare’s outpatient care coverage will jump by 14.5% for 2022, one of the largest increases in many years.
The standard premium for Part B, which covers outpatient care and durable equipment, will be $170.10 in 2022, an increase of $21.60 from $148.50 in 2021 according to the Centers for Medicare & Medicaid Services. The program’s trustees had initially estimated earlier this year that the premium would only rise to $158.50.
The larger-than-anticipated increase is partly attributed to rising prices and utilization across the health care system and prior congressional action that limited the increase in the 2021 Part B premium.
Additionally, contingency reserves have been increased to account for potential new treatment costs incurred by the program.
Those are not the only cost increases. The deductible for Medicare Part A (hospital coverage) per benefit period (which generally starts when you are admitted to the hospital) will be $1,556 in 2022, up $72 from the 2021 deductible of $1,484.
It’s Not Just Premiums And Deductibles That Are Increasing
Medicare has built-in cost sharing. If you’re enrolled in traditional Medicare (Parts A & B), not only do you have a separate Part A and Part B deductible and a premium for Part B, there are additional copay requirements when you are in the hospital or skilled nursing facility for an extended period. Here is a helpful layout of your cost share responsibilities compared to 2021:
If You Make More, You’ll Pay More
If you’re a Medicare beneficiary who earns over $91,000 a year, and are enrolled in Medicare Part B and/or Medicare Part D, you will be assessed an Income-Related Monthly Adjusted Amount (IRMAA), which is a surcharge added to the Part B and Part D premiums.
Since 2007, higher-income Medicare enrollees have been required to pay the IRMAA surcharge for Part B coverage. An IRMAA surcharge for Part D premiums took effect in 2011.
IRMAA is determined using your income tax returns two years prior. (For example, your 2022 Medicare premiums are determined using your 2020 income tax return). This amount is recalculated annually and there is an appeals process if your financial situation has changed.
IRMAA is determined using a form of Modified Adjusted Gross Income (MAGI) unique to Medicare. This MAGI is different from your Adjusted Gross Income (AGI) because it includes additional income sources not used to calculate AGI.
You Have Options To Help You Minimize Your Expenses!
We represent multiple Medicare Advantage, Medicare Supplement and Prescription Drug Plans (PDPs) from highly rated insurance companies that are designed to meet a wide range of budgets and coverage needs. If you have questions about Medicare benefits and how your current plan stacks up to what’s available…contact us! We provide consultation services at no cost to you. Our only interest is placing you in a plan that you can afford and meets your needs.
