Medicare provides vital health insurance for 50 million beneficiaries. Medicare enrollees have to pay premiums and other out-of-pocket costs such as deductibles and coinsurance. Below we break down each part of Medicare & the cost so you can be prepared for what you’ll pay out-of-pocket. The numbers below are for 2021, as soon as CMS releases the annual numbers for 2022 we will update the content accordingly.

Costs for Medicare Part A in 2022

Part A Premium

Medicare Part A covers inpatient care. The majority of beneficiaries get Part A premium-free. This is because they paid into Medicare enough quarters while working. For those who did not pay enough quarters, you’ll have to buy Part A. In 2022, the full premium for Part A for those who paid Medicare taxes for less than 30 quarters is $499. If you paid Medicare taxes for 30-39 quarters, the premium will be $274.

Part A Deductible

The deductible under Part A for 2022 is $1,556. It’s important to remember that this deductible is per benefit period, not per calendar year.

Part A Inpatient Coinsurance

  • $0 coinsurance for days 1-60
  • $389 daily coinsurance for days 61-90
  • $778 daily coinsurance for days 91-120 (this includes 60 lifetime reserve days)
  • After you’ve exhausted your lifetime reserve days, you’ll pay 100% out of pocket

Costs for Medicare Part B in 2022

Part B Premium

The standard Part B premium for 2022 is $170.10. Depending on your income, you may pay more.

Part B Deductible & Coinsurance

The deductible for Part B in 2022 is $233. After you’ve met this deductible, you’ll pay 20% coinsurance for any services received.

Costs for Medicare Advantage (Part C) in 2022

The monthly premium and out-of-pocket costs for Medicare Advantage plans are different from plan to plan. The average premium for 2022 is $19 per month. Which is a decrease from 2021 of $21.22 per month.

Costs for Medicare Part D Prescription Drug Plans in 2022

Just like Medicare Advantage plans, Medicare Part D plans out of pocket costs are different from plan to plan. The average monthly premium for Part D in 2022 is $33. That’s a 4.9% increase from 2021.

How to Get Help with Out of Pocket Medicare Costs

  • Income limits vary from state to state and are adjusted annually. Generally, the 2021 income limit for any type of assistance is $12,490 a year for an individual and $16,910 for a couple.
  • Most programs also look at your assets (bank accounts, retirement, etc.). Typically, the value of your home and car are not taken into account. The asset limit for 2021 is roughly $7,730 for an individual and $11,600 for a couple. Some states have adopted higher limits or eliminated them altogether so check to see what the rules are for your state.
  • Contact your local State Health Insurance Assistance Program (SHIP) to learn more about your state’s programs and get help navigating the application process. Call 1-800-MEDICARE or go to www.Medicare.gov and click on “Find someone to talk to.” Available 24 hours a day/7 days a week.

How Do I Apply?

  • Visit the National Social Security website to learn more about the Part D Extra Help Program and file an application.
  • Contact your state’s Medicaid office to apply for the Medicare Savings Programs or Medicaid.
  • Use the Medicare.gov contacts page to find a Senior Health Insurance Program counselor in your state who can help you find a health plan that is right for you.

Are There Other Options for Getting Help With Medicare Costs?

  • Explore options in your area. Some states offer additional help with prescription drug costs.
  • Veterans may qualify for extra help through the Department of Veterans Affairs (VA).
  • Take advantage of any help you may get from a former employer.
  • Consider getting a Medicare Supplement Insurance (Medigap) or Medicare Advantage Plan. Some plans can be costly and others may limit which doctors you can see.

How to Get Help with Medicare Costs

A great way to get help covering premiums and deductibles under Part A & Part B is to enroll in supplemental Medicare insurance. This includes either a Medigap or a Medicare Advantage plan. Both work differently, so it’s important to understand the differences. To learn more, give us a call. Or complete our online form to see different rates available in your area.

by Lindsay Malzone, Lindsay Malzone is the Medicare expert for Medigap.com. She's been contributing to many well-known publications as an industry expert since 2017. Her passion is educating Medicare beneficiaries on all their supplemental Medicare options so they can make an informed decision on their healthcare coverage.
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