What’s the 2022 Price Increase on Medicare ?

What’s the 2022 Price Increase on Medicare ?

Money Talks News’ recent article entitled “Traditional Medicare Premiums Will Soar in 2022” says that the rising costs include the:

  • 2022 Medicare Part B standard premium: $170.10 per month, an increase of $21.60 from $148.50 in 2021. That’s compared with an increase of $3.90 per month one year earlier.
  • 2022 Medicare Part B deductible: $233 per year, an increase of $30 from $203 in 2021. That’s compared with an increase of $5 one year prior.
  • 2022 Medicare Part A inpatient hospital deductible: $1,556, an increase of $72 from $1,484 in 2021. That’s compared with an increase of $76 one year prior.

What this means is that Medicare costs will go up 2022 and will effectively reduce the 5.9% cost-of-living adjustment (or “COLA”) that increases retirees’ monthly Social Security benefit payments in the new year. For the average retiree, the 2022 COLA is about an extra $92 a month. These Social Security COLAs averaged 2.2% between 2000 and 2020 and annual increases in the Part B premium averaged 5.9% during the same period.

Here what Medicare Part A covers:

  • Inpatient hospital services
  • Skilled nursing facility services; and
  • Some home health care services.

Nearly all (roughly 99%) of Medicare beneficiaries don’t pay a premium for their Part A coverage due to how long they worked and had Medicare taxes withheld from their paychecks. Medicare Part B covers the following types of care:

  • Physician services
  • Outpatient hospital services
  • Certain home health services
  • Durable medical equipment; and
  • Certain other medical and health services not covered by Part A.

Part B premiums are based on income. Those with higher incomes pay higher Part B premiums — which will be anywhere from $238.10 to $578.30 for 2022, depending on income and federal tax-filing status.

Reference: Money Talks News (Nov. 15, 2021) “Traditional Medicare Premiums Will Soar in 2022”