Why does Medicare go up, increasing out-of-pocket costs for all beneficiaries, almost every year? There’s already so much information to keep up with as it is. But that’s what we’re here for. We want to keep you informed and up to date so that your experience with Medicare is as effective as it is painless. On this page, you’ll learn everything you need to know about the upcoming Medicare changes for 2022.
How Much is Medicare Part A & Part B Going Up in 2022
The prices for Medicare Parts A and B are, among other things, tied to inflation. So it’s no surprise they go up almost every year. And 2022 is no exception. There are important price changes happening to both your hospital and medical Medicare benefits, and you need to know what those are in order to budget accordingly.
Part A Deductible for 2022
As of right now, the annual deductible for Medicare Part A is $1,484 per person. For 2022, however, it’s going to increase. The new annual deductible for your Medicare hospital benefits is going to cost you $1,556. Keep in mind that you will pay your Part A deductible only once per benefit period, and you can experience more than one benefit period in a single calendar year.
Part A Premium for 2022
Most seniors are fortunate enough that they don’t have to pay a monthly premium for Medicare Part A, so these Medicare changes won’t impact most beneficiaries. But if you worked for less than 40 quarters during your employment years, you’ll likely have to buy into Part A and pay some sort of premium. The more quarters you worked and paid into the system, the less you’ll pay each month post-retirement.
If you worked between 30 and 39 quarters during your employment years, you’ll only have to pay a partial monthly premium of $274 for Medicare Part A in 2022. This is a $15 increase over the previous year’s $259 partial premium. But if you worked less than 30 quarters, you’ll have to pay the full premium, which will be $499 in 2022. This is a $28 increase over the previous year’s $471 monthly premium.
Inpatient Hospital Benefit Period Out of Pockets Costs
If you are checked into a hospital facility for inpatient care, you will start what’s called a “benefit period”. Once you are discharged from a hospital or Skilled Nursing Facility (SNF), your benefit period expires 60 days later. If you have to be admitted for more inpatient care after that, a new benefit period starts.
The change in price for coinsurance, which you must pay in addition to your Part A deductible, is:
- 0 – 60 days: $0
- 61 – 90 days: $389 per day
- 91 days and beyond: $778
Skilled Nursing Facility Copayments
If you require a temporary stay in a Skilled Nursing Facility, you’ll have to pay a daily coinsurance amount for your care. The first 20 days are free. On days 21-100, the copay will increase from $185.50 per day to $194.50 in 2022. Starting on day 101, you will pay for the full cost of your care until you are discharged.
Part B Deductible for 2022
Right now, your annual Medicare Part B deductible is $203 for outpatient care. You only have to pay this once per year, and you’ll only be responsible for 20% of your Medicare-approved expenses for the rest of the year thereafter. In 2022, that price will increase to $233. That’s a $30 annual increase.
Part B Premium for 2022
In 2022, the standard Part B premium will be $170.10 per month. In 2021, the Medicare Part B premium was $148.50. That’s an annual increase of $21.60.
How Much is Medicare Advantage Going Up in 2022
As more and more baby boomers reach retirement age, Medicare Advantage numbers are expected to grow. The Medicare changes to enrollment in 2022 are predicted to jump from 26.9 million to 29.5 million seniors. The more enrollees there are in the system, the more costs are shared by all – which means your monthly costs for a Medicare Advantage plan will be less expensive. According to KFF, the average Medicare beneficiary has access to double the amount of Medicare Advantage plans compared to previous years. Most beneficiaries have access to 39 Medicare Advantage plans.
Average Medicare Advantage Premium for 2022
Medicare Advantage plans will be lower in 2022 at $19 per month, compared to $21.22 in 2021. Keep in mind that this number is a rough average, and doesn’t include the regional pricing or additional medical benefits which some seniors choose to add to their Medicare Advantage plans.
Medicare Advantage Dual Eligible Special Needs Plans
Your brain – and the thoughts inside of it – are just as important to your overall health as any other organ in your body. That’s why 2022 Medicare changes will increase the number of Medicare Advantage plans which not only cover Medicare Parts A and B, but also certain forms of behavioral health treatment, long-term services, and long-term support. There will be 295 plans to choose from next year, as opposed to the previous year’s 256.
Value-Based Insurance Design
It’s never too late to teach an old dog new tricks. Medicare is no exception. The 2022 Advantage plan providers are partnering with the CMS to provide “Value-Based Insurance Design” (VBID) plans in 2022. These VBID models will let just short of 4 million seniors test-drive a customized insurance plan tailored to their specific medical needs based on their health history and unique, present-day health issues. These plans also address important senior needs like food security and regular socialization. Many plans across 22 states and US territories will also offer a Hospice Benefit Component, increasing the number of seniors who will get the palliative and integrated hospice care they need.
Supplemental Benefits for Chronically Ill
In 2022, 25% of all Medicare Advantage plans will offer special supplement benefits for the chronically ill. This is a massive jump from 19%, which was the percentage of Medicare Advantage plans offering these benefits in 2021.
How Much is Medicare Part D Going Up in 2022
Lastly, there’s Medicare Part D. There are some minor yet noteworthy Medicare changes happening for the government-sponsored prescription drug program in 2022. Sadly, there will be an increase in the monthly premium for all seniors across the board. But others will get better, more affordable access to one of the most common and necessary life-saving drugs in demand today.
Average Medicare Part D Premium for 2022
The bad news is your prescription drug plan premiums will increase in 2022. The average premium cost was $31.47 in 2021. Thankfully, though, 2022 premiums will only be $33 per month on average, which is a manageable increase for the vast majority of seniors.
Part D Senior Savings Model
CMS will continue testing out the Part D Senior Savings Model in 2022. This model drastically slashes the price of certain brands of insulin for qualifying seniors. For 2022, 500 new plans for either Medicare Advantage or Medicare Part D recipients will join the already 2,100 plans available with the discounted insulin. On top of that, two more insulin manufacturers will be providing the drug at a reduced cost, increasing the available supply for those who need it.
How Much is the Deductible for Medigap High Deductible Plans F, G, & J Going Up in 2022
High deductible Medigap plans F, G, and J will experience a significant price hike in 2022. This deductible is tied to the Urban Consumer Price Index, which explains why plan members will have to pay so much more starting next year. Deductibles for these plans, which offer seniors low monthly premiums in exchange for a higher deductible, were $2,370 in 2021. For 2022, however, the new deductible will be $2,490. That’s a $120 increase.
How much will Medicare Part B go up in 2022?
In 2022, the Medicare Part B annual deductible will increase from $203 to $233 and the monthly premium will increase from $148.50 to $170.10.
What are the Medicare premiums for 2022?
Monthly premiums for Medicare Part A recipients who paid Medicare taxes for 30-39 quarters before retirement will increase from $259 to $274. For seniors who paid Medicare taxes for fewer than 30 quarters before retirement, the full monthly premium will increase from $471 to $499. If you worked and paid Medicare taxes for 40 quarters or more, your Medicare Part A monthly premiums will still be free. Medicare Part B monthly premiums will increase from the base rate of $148.50 to a new base rate of $170.10, and scale up based on your reported income on your tax returns.
What’s the average premium for Medicare Advantage in 2022?
The average Medicare Advantage premium will increase from $19 per month to $21.22 per month. Keep in mind this is an average estimate and may not reflect your own personal needs and/or costs.
What’s the average premium for Part D prescription drug plans in 2022?
The average Medicare Part D prescription drug plan premium is expected to increase from $31.47 to $33 per month. Again, keep in mind that this is average and may not reflect your unique situation.
What is the high deductible amount for Medigap Plans F & G in 2022?
The high deductible cost for Medigap Plans F and G will jump from $2,370 in 2021 to $2,490 in 2022.
What are the Medicare Advantage & Part D Star Ratings for 2022?
For 2022, there was a big Medicare Advantage average star rating jump from 4.06 stars up to 4.37 stars. For Medicare Part D prescription drug plans, the overall rating keeps climbing from 3.58 in 2021 up to 3.7 in 2022.
How to Get Help with Your Medicare Options in 2022
If you still have a question that isn’t answered above, feel free to reach out and contact us. We’re here to help. You can get a rate quote for plans in your area by filling out our online form.