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Medicare Insurance Rates: What’s New for 2022

by | Nov 24, 2021

Medicare costs are set to increase in 2022. This was expected, but CNBC says some of the increases are much higher than anticipated. If you’re enrolled in Medicare or plan to enroll soon, you need to pay attention to the new Medicare insurance rates for 2022.

2022 Medicare Part A and B Costs

CMS has announced that Medicare beneficiaries will be paying more for Medicare Part A and B coverage in 2022.

Medicare Part A costs are increasing as follows:

  • Most people who are enrolled in Medicare qualify for premium-free Medicare Part A, but for those who have to pay for coverage, the full premium is going from $471 to $499.
  • The Medicare Part A inpatient hospital deductible is increasing from $1,484 to $1,556.
  • The daily coinsurance rates are also increasing. The daily coinsurance for days 61 to 90 are going from $371 to $389, the daily coinsurance for lifetime reserve days is going from $742 to $778, and the skilled nursing facility coinsurance is going from $185.50 to $194.50.

Medicare Part B costs are increasing as follows:

  • The standard Medicare Part B premium is increasing from $148.50 to $170.10. This is a surge of $21.60.
  • The annual deductible is increasing by $30, from $203 to $233.

Medicare Advantage and Part D Premiums

Medicare Advantage and Medicare Part D plans are offered by private insurance companies, so the costs vary from plan to plan.

CMS says that the average Medicare Advantage premium will be $19 per month in 2022. This is down from 2021, when the average premium was $21.22. The average Medicare Part D premium is expected to be $33 per month, up from $31.47 in 2021.

Income-Related Monthly Adjustments

Some Medicare enrollees have to pay more for Medicare Part B and Medicare Part D coverage based on their income.

CMS says that the Medicare Part B income-related surcharges affect about 7% of enrollees, while the Medicare Part D income-related surcharges affect around 8% of enrollees. In 2022, the following beneficiaries will be subject to a surcharge:

  • Beneficiaries with an individual tax return with a modified adjusted gross income of more than $91,000.
  • Beneficiaries with a joint tax return with a modified adjusted gross income of more than $182,000.

Finding Coverage to Meet Your Budget

If you are having trouble affording Medicare insurance rates, you may qualify for help through the Extra Help and Medicare Savings Programs. You may also be able to control your costs by selecting a plan that provides good value for the services and prescriptions you expect to need. Our network of licensed insurance agents can help you review your options. Contact Medicare Educators.