The new 2022 Medicare premium adjustments are in, and they are substantial. Medicare Part B recipients will be seeing the most significant dollar increase in the program’s history next year due to increased service costs. Monthly Part B premiums will increase by $21.60 in 2022, almost a 14% increase from $148.50 in 2021. There are several reasons the Centers for Medicare & Medicaid Services (CMS) have sighted for the premium increase:
- Rising healthcare costs and increased use of the Medicare system
- The limited 2021 Medicare Part B monthly increase as part of the Continuing Appropriations Act
- CMS is also setting funds aside in the event that Medicare will cover a new Alzheimer’s drug, Aduhelm, and similar drugs to treat Alzheimer’s. Aduhelm has recently been approved by the Food & Drug Administration (FDA).
While the Part B premium increase is the largest we have seen, the Social Security Cost of Living Adjustment (COLA) is the largest in almost 30 years, with an estimated average increase of $71.40 per recipient. Those Social Security recipients whose Part B premiums are deducted from their benefits will likely still see a net increase in their monthly check.
The Part B premium increase doesn’t include other increases to Medicare deductibles, co-insurance, and additional general health care costs. Just a reminder that Medicare open enrollment started October 15, 2021, and ends on December 7, 2021. This open enrollment period is when you can pick a new plan and compare plan options. Coverage costs vary among Medicare supplement and Part D plans, so it makes sense to review your coverage and make sure you are receiving the best benefits coverage for your needs.