Medicare costs are usually based on the value of the dollar, so they're adjusted annually. While in some recent years, the increase was minor and in other rarer cases the costs decreased, the current jump is going to be a difficult pill to swallow.
They say the bigger increase is attributed to two things, 1. rising prices and utilization across the health care system, and 2. congressional action that limited the Part B increase for 2021. There's also talk about potential new treatment costs that could be incurred by the program.
Most people don't pay the Part A premiums, but for those who have worked less than 40 quarters (or 10 years) and don't qualify for Medicaid, the Part A/Hospital premium is going up from $471 to $499 a month.
The harder hit for most is the Part B premium increase to $170.10 a month - a 14.5% increase from $148.50 in 2021. Compare that to the 5.9% cost of living adjustment for 2022 -- in 2021 the COLA increase was just 1.3%.
The Part A Hospital Deductible is going up to $1,556 from $1,484. And take note, that is per benefit period, it's not an annual deductible; after 60 days coinsurance starts, and that is also increasing. The Part B deductible is jumping from $203 to $233.
The premium for Part B was just $45.50 at the turn of the century, and it's since increased 226%.
A brief history of Part B premium base cost:
2010 - $110.50 2015 - $104.90 2020 - $144.60
2011 - $115.40 2016 - $121.80 2021 - $148.50
2012 - $99.90 2017 - $134 2022 - $170.10
2013 - $104.90 2018 - $134
2014 - $104.90 2019 - $135.50
I hate breaking this news to my clients who are already under financial duress. One of the things I can do is help some people apply for state and federal assistance. We can also review the Part B give back options available with some Part C Advantage plans.
If you're looking for bigger and better savings and benefits, we can help. There is never a fee for our services. Call for a free, confidential review and assessment.
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