The Centers for Medicare and Medicaid Services recently announced some new changes coming to Medicare in 2022. Highlighted below are some of the biggest changes you can expect to see in 2022.
Price Changes
Medicare Parts A, B, and D are all increasing in price in 2022. The biggest change in Part A is the deductible, which is increasing to $1,556 in 2022 up from $1,484. Some coinsurance amounts are increasing modestly as well. For example, for hospitalization days between 61 and 90 the coinsurance rate will be $389 per day in 2022, up from $371. The premium for Medicare Part D will also be increasing slightly to $33 a month in 2022, up from $31.47.
The biggest changes in price are coming from Medicare Part B, which covers physician services, outpatient care, and a few other services not covered under Part A.
Changes in Part B
Year | Premium (lowest income bracket) | Annual Deductible |
2021 | $148.50 | $203 |
2022 | $170.10 | $233 |
Other Changes to Note
The Centers for Medicare and Medicaid Services justified the price increases due to the fact that most Medicare beneficiaries receive Social Security benefits, and those are increasing. In 2022, seniors who collect Social Security income will see a 5.9% cost-of-living adjustment in their payments. While the bump in Social Security income will certainly help cover some of these costs, many seniors will not have as much leftover from their Social Security income as they need.
For a full list of the changes, check out this article. If you are concerned about the price increases you will experience in your plan in 2022, you can reach out to your local SHIP center or visit Medicare.gov to ask questions. If you decide you’d like to switch into a Medicare Advantage plan to avoid these increases you can do so before December 7th. You can read more about the Pros and Cons of Medicare Advantage Plans here.