Each year, the Centers for Medicare and Medicaid Services releases new rates for Medicare premiums and deductibles.
Unfortunately, costs have gradually increased over the past decade. For 2022, this trend continues, with Part B premium costs alone increasing 14.5% versus 2021.
Here’s how things will break down for your clients who have Medicare parts A, B or D.
Medicare Part A Updates
The Medicare Part A premium for 30 quarters (7.5 years) worked, has increased by 5.8% to $274, with a full premium of $499. The Medicare Part A deductible has increased by 4.8% to $1,556.
Coinsurance for days 61 – 90 has increased by 4.8% to $389 per day. Coinsurance for days 91+, or lifetime reserve days, has increased to $778 per day.
It’s important to point out for your Medicare clients that costs for Part A coverage for skilled nursing facilities have also increased. For this, coinsurance for days 21 – 100 has increased by 4.6% to $194 per day.
Medicare Parts B & D Updates
The standard Part B premium has increased to $170.10. As for Part B’s deductible, clients who are Part B beneficiaries will pay $233 before their 20% coinsurance kicks in.
For Medicare Part D drug plans, the maximum deductible has risen by 7.9% to $480.
For your clients who are Part D beneficiaries, they will enter a coverage gap after spending $4,430 on covered drugs. This is $300 more than the previous year. After spending $7,050 out of pocket — a $500 increase from 2021 — these beneficiaries are out of the coverage gap and enter catastrophic coverage.
LEGAL DISCLAIMER: The above is meant to be strictly educational and not intended to provide medical advice or solicit the sales of an insurance product or service of any kind.