During the month of November, the Centers for Medicare and Medicaid Services (CMS) released the premiums, deductibles and coinsurance amounts for Part A and Part B programs for 2022, as well as the Part D income-related monthly adjustment amounts. And, as you may have guessed, prices are increasing. In fact, it’s the largest dollar increase in the health insurance program’s history.
To help you prepare for the changes that will take effect starting January 1st, 2022, let’s cover what you need to know about Medicare’s rising charges.
Medicare Part B Premium and Deductible
Medicare Part B covers doctors’ appointments, lab tests, certain home health services, durable medical equipment, outpatient hospital services and others.
Each year, the Social Security Act sets the premium, deductible and coinsurance rates. Medicare Part B enrollees will now be paying $170.10 in 2022, up $21.60 from $148.50 in 2021.
The annual deductible for Part B beneficiaries will be $233 in 2022, an increase of $30 from last year’s $203 deductible.
Keep in mind that this is a rough breakdown of what the majority of Medicare beneficiaries will be paying for healthcare starting January 1st. However, if you are a high earner, your rates will be higher.
Medicare Part A Premium and Deductible
Medicare Part A covers inpatient hospital services, inpatient rehabilitation, some home health care services and others. Premiums for Part A are also increasing in 2022.
The Medicare Part A inpatient hospital deductible you’ll pay will be $1,556 in 2022, an increase of 72 from $1,484 in 2021.
However, about 99 percent of Medicare beneficiaries do not have a Part A premium because they have at least 40 quarters of Medicare-covered employment. So this price hike will only affect about 1 percent of beneficiaries.
Why is Medicare Going Up?
As financial advisors in NJ, we certainly don’t like reporting price increases to our clients, but Medicare is one of those things that can change every year. Sometimes it stings less when you know the reasons for the price increase, sometimes it doesn’t. But it still helps to know why you’ll be paying more.
Here are some of the main reasons why Medicare premiums and deductibles are increasing:
Find Out What You’ll be Paying for Medicare in 2022
If the new Medicare rates have come as a surprise to you, they have to us, too. But we will adjust, as we always do. To find out what you’ll be paying in Medicare premiums and deductibles, contact Leonard Financial Solutions today. We’ll make sure you have all the coverage you need while being able to put money away each month.
To help you prepare for the changes that will take effect starting January 1st, 2022, let’s cover what you need to know about Medicare’s rising charges.
Medicare Part B Premium and Deductible
Medicare Part B covers doctors’ appointments, lab tests, certain home health services, durable medical equipment, outpatient hospital services and others.
Each year, the Social Security Act sets the premium, deductible and coinsurance rates. Medicare Part B enrollees will now be paying $170.10 in 2022, up $21.60 from $148.50 in 2021.
The annual deductible for Part B beneficiaries will be $233 in 2022, an increase of $30 from last year’s $203 deductible.
Keep in mind that this is a rough breakdown of what the majority of Medicare beneficiaries will be paying for healthcare starting January 1st. However, if you are a high earner, your rates will be higher.
Medicare Part A Premium and Deductible
Medicare Part A covers inpatient hospital services, inpatient rehabilitation, some home health care services and others. Premiums for Part A are also increasing in 2022.
The Medicare Part A inpatient hospital deductible you’ll pay will be $1,556 in 2022, an increase of 72 from $1,484 in 2021.
However, about 99 percent of Medicare beneficiaries do not have a Part A premium because they have at least 40 quarters of Medicare-covered employment. So this price hike will only affect about 1 percent of beneficiaries.
Why is Medicare Going Up?
As financial advisors in NJ, we certainly don’t like reporting price increases to our clients, but Medicare is one of those things that can change every year. Sometimes it stings less when you know the reasons for the price increase, sometimes it doesn’t. But it still helps to know why you’ll be paying more.
Here are some of the main reasons why Medicare premiums and deductibles are increasing:
- Congress fought to keep rates low last year due to the pandemic. In 2021, the Part B premium increased by only $3 a month. Congress directed CMS to pay this back over time starting in 2022.
- Reserves are being set aside for a new Alzheimer’s drug, Aduhelm, which was approved by the FDA earlier this year. It’s still unknown if Medicare will cover the drug, but money is being set aside just in case.
- Due to the pandemic, an aging population and other factors, Medicare is accounting for the increased usage of the healthcare system and its rising prices.
Find Out What You’ll be Paying for Medicare in 2022
If the new Medicare rates have come as a surprise to you, they have to us, too. But we will adjust, as we always do. To find out what you’ll be paying in Medicare premiums and deductibles, contact Leonard Financial Solutions today. We’ll make sure you have all the coverage you need while being able to put money away each month.
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