What will you pay for Medicare in 2022?
As of November 12th, 2021 the Centers for Medicare and Medicaid released cost changes for Medicare Parts A and B. These changes will affect monthly premiums, deductibles, coinsurance amounts, and the 2022 Medicare Part D income-related monthly adjustment.
What has changed to Medicare Part A?
Let’s take a glance at the changes, starting with Medicare Part A and the Deductible. As a reminder Medicare Part A covers hospital stays, skilled nursing facilities, and in some cases hospice and in-home health care. Keep in mind that most people do not pay a premium for Part A if they (or their spouse) have worked for 40 quarters (10 years) and paid into Medicare taxes.
| 2021 | 2022 | |
| Part A Premium
*if assessed |
$471 | $499 |
| Inpatient Hospital Deductible | $1,484 | $1,556 |
| Daily coinsurance days 61-90 | $371 | $389 |
| Daily coinsurance days 91-150 | $742 | $778 |
| Skilled Nursing Facility coinsurance
*days 21-100 |
$185.50 | $194.50 |
What has changed to Medicare Part B?
Medicare Part B covers most doctor services, outpatient therapies and durable medical equipment. Changes to the premium and deductible are listed below.
| 2021 | 2022 | |
| Part B Premium
*Income related monthly adjustment applies, see chart. |
$148.50 | $170.10 |
| Part B Deductible | $203 | $233 |
The Part B Premium is based on an individual’s income and what a beneficiary pays is based on the income-related monthly adjustment amounts (IRMAA). The standard premium of $170.10 is for individuals that made $91,000 or less according to income tax returns or made less than $182,000 based on a joint filing. Use the chart below if IRMAA is applicable in your specific situation.
*If your yearly income in 2020 (for what you pay in 2022) was:
| Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Income-related monthly adjustment amount | Total monthly premium amount |
| Less than or equal to $91,000 | Less than or equal to $182,000 | $0.00 | $170.10 |
| Greater than $91,000 and less than or equal to $114,000 | Greater than $182,000 and less than or equal to $228,000 | $68.00 | $238.10 |
| Greater than $114,000 and less than or equal to $142,000 | Greater than $228,000 and less than or equal to $284,000 | $170.10 | $340.20 |
| Greater than $142,000 and less than or equal to $170,000 | Greater than $284,000 and less than or equal to $340,000 | $272.20 | $442.30 |
| Greater than $170,000 and less than $500,000 | Greater than $340,000 and less than $750,000 | $374.20 | $544.30 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $408.20 | $578.30 |
Medicare Part D Income-Related Monthly Adjustments
Medicare Part D (Prescription drug coverage) also assesses an income-related monthly adjustment amount that is paid in addition to an individual’s prescription drug plan premium.
If your yearly income in 2020 (for what you pay in 2022) was:
| Beneficiaries who file individual tax returns with modified adjusted gross income: | Beneficiaries who file joint tax returns with modified adjusted gross income: | Income-related monthly adjustment amount |
| Less than or equal to $91,000 | Less than or equal to $182,000 | $0.00 |
| Greater than $91,000 and less than or equal to $114,000 | Greater than $182,000 and less than or equal to $228,000 | $12.40 |
| Greater than $114,000 and less than or equal to $142,000 | Greater than $228,000 and less than or equal to $284,000 | $32.10 |
| Greater than $142,000 and less than or equal to $170,000 | Greater than $284,000 and less than or equal to $340,000 | $51.70 |
| Greater than $170,000 and less than $500,000 | Greater than $340,000 and less than $750,000 | $71.30 |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $77.90 |
Why the huge increases?
We have seen some of the largest spikes in cost this year; the Part B premium is the largest ever dollar amount increase. The Centers for Medicare and Medicaid Services (CMS) point to a number factors including an increase to Social Security Benefits of 5.9% based on cost of living, pandemic spending, and a planning for the cost of a potentially new Alzheimer drug.
It is more important now than ever to ask questions on how premiums, co-insurance and deductibles directly affect your health insurance coverage! If you have any more questions about these increases, contact VibrantUSA today.
For more detailed information please visit the Center for Medicare and Medicare Services website at: https://www.cms.gov/newsroom/fact-sheets/2022-medicare-parts-b-premiums-and-deductibles2022-medicare-part-d-income-related-monthly-adjustment
