It’s the time of year when Centers for Medicare & Medicaid Services (CMS) reveal the updated costs for the next year. With the update comes news that Medicare recipients will pay higher costs for certain Medicare benefits. In this article, we’ll outline the updated 2022 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs, and the 2022 Medicare Part D income-related monthly adjustment amounts. We’ll also cover the reported reasons for the unprecedented 2022 Medicare cost increase.
As always, if you have questions about your Medicare benefits, give our Medicare representatives a call at (901) 460-7220, or email us at firstname.lastname@example.org.
2022 Medicare Part B Premium and Deductible
Medicare Part B, which covers outpatient services, durable medical equipment, etc (see complete Part B coverage explanation here) will see a historically large increase. Part B monthly premiums will increase by about $22 for most people, jumping to $170.10 in 2022. The annual deductible for Medicare Part B will increase significantly, too, jumping to $233 from $203.
2022 Medicare Part B Income-Related Monthly Adjusted Amounts (IRMAA)
Most people will pay the standard premium of $170.10, but if you fall into the small group of Medicare recipients who pay more, your Part B premium will be determined by the income taxes that you filed two years prior. For 2022 premiums, you’ll look at 2020 taxes. Review the chart below from CMS’ website to find your income-related monthly adjusted amount.
2022 Part A Deductible and Premium
Medicare Part A covers in-patient hospital stays, in-patient surgery, etc (see a full explanation of Part A coverage here). If you are admitted to the hospital in 2022, the deductible you will pay will be $1,556, which is a $72 increase from the last year. These costs will change depending on the number of days you spend in the hospital. For a detailed explanation of Part A cost-share amounts in 2022, see CMS’ chart below.
While most people do not pay a premium for Part A, if you do not have at least 40 quarters of employment on your record, you will see a cost increase here, too. In 2022, the reduced monthly premium rate for Medicare Part A will increase to $274 and is available to people who had at least 30 quarters of coverage or were married to someone with at least 30 quarters of coverage. If you have fewer than 30 quarters of covered employment or are a qualified individual with Medicare disability coverage, you will pay $499 a month in 2022.
2022 Medicare Part D Income-Related Monthly Adjustment Amounts (IRMAA)
Your Part D monthly premium is determined by your income. The IRMAA impacts only a few Part D enrollees. If you are one of the few who are impacted by IRMAA, you will pay the adjusted amount in addition to your Part D plan’s premium, which varies based on your Part D provider. Typically, these adjusted amounts are taken from your social security check automatically. At the bottom of this page, we’ve included CMS’ chart to show the premium adjustments for high-income beneficiaries.
Reported Reasons for the Medicare Cost Increases for 2022
Typically, large increases in Medicare costs are the result of the events of previous years in coordination with future outlook. As such, there will usually be a few years with fairly stable costs, then a quick jump will happen in an effort to match actual healthcare cost fluctuations. The reasons CMS has cited align with this.
According to the 2022 cost announcement from CMS, there are three reasons we’re seeing costs rise:
Regulation mandates that Medicare costs be established based on current spending trends. With COVID-19, healthcare spending has exceeded the expenses of previous years.
Because of a law that limited the Medicare cost increase in 2021 due to economic concerns amid the pandemic, monthly premiums in 2021 were limited to a 3% increase. This has led us to “make up ground” in 2022 with a $3 per beneficiary per month increase in the Medicare Part B premium (that would have ended in 2021) being continued through 2025.
Projections over a specific drug cost increase are playing a role, too. Medicare reserves a sufficient contingency account in preparation for expected drug increases. In 2022, an Alzheimer’s drug is anticipated to hit the market, impacting Medicare expenses. Read more about the anticipated drug here.
We’re Here for You
If you have questions about your Medicare or cost increases that will impact you, we’re here to help. Our Medicare representatives are dedicated to helping you understand your Medicare benefits. You can reach us by phone at (901) 460-7220, or by email at email@example.com.