The 2022 Medicare cost at a glance just came out. This includes the new part B premium and the Part B deductible. In 2021 it the premium for part B was $148.50; this price jumped to $170. This is the largest increase in health insurance history. Learn how this can affect you and what you can do about it.
Why did Medicare increase its premium?
In 2022 the standard monthly premiums for Medicare part B will be $170.10.
The deductible for 2022 has a large increase as well, as it went from $203 to $233. If you have a medicare supplement plan and have a plan G or a Plan N, you will be paying this deductible.
Medicare gave the following reasons for the price increase (AARP Medicare)
- Prices to deliver health care to Medicare enrollees are going up, and the use of the health care system has increased.
- Congress lowered the expected Part B premium increase last year, because of the pandemic. In 2021, the Part B premium only increased by $3 a month. Congress directed CMS to pay back that reduced premium over time, and that payback will start in 2022.
How Medicare’s premium increase might affect you
Social securities COLA (cost adjustment living adjustment) has been increased by 5.9%. This is the largest social security increase we have seen in over 40 years. The cost of living adjustments exists to counteract the effects of inflation.
This should be a good thing. However, most people don’t realize that this increase comes with a price increase on the other end, and in this case, the Medicare costs increased.
To show how this can affect you, we will give you an example.
Carl receives $ 1,500 a month from Social Security. A 5.9% increase is about a thirty-dollar increase every month that he is going to get. This increase is tied directly to what Medicare charges for the doctor portion of the benefit, an out-of-pocket expense they deduct from your Social Security. Medicare is going to go up by $21.60: from $148.50 to $170.10. Carl, who’s making fifteen hundred dollars a month from social security, will only have a net increase of less than 8 dollars, which is less than half of a percent. This affects his wallet. The cost of living adjustment for inflation turns out to be much lower.
What can you do about this increase?
There might be better medicare plans out there that fit your needs better, and that can help you get some of that money back.
We are almost at the end of the annual election period (December 7th, 2021) so make sure that you review your policy before it ends. Click here to schedule a Medicare review.
We also host an Educational Medicare 101 webinar several days a week. It’s free, and you can sign up by clicking here.
During this webinar, you will:
- Learn about how changes in the 99+ plans in your area will affect your next year by attending this Medicare Annual Election Period educational seminar.
- Walk away with a clear idea of which style of Medicare plan is best for you and your family in 2022.
- Learn how to avoid the top 7 reasons people end up overpaying by thousands over the years on Medicare insurance and co-pays.
- Learn how to take advantage of California’s exclusive rule to protect you from ever overpaying for Medicare insurance again!