Powered by Q1Group LLC
Education and Decision Support Tools for the Medicare Community
  • Menu ☰
  • Home
  • Contact
  • MAPD
  • PDP
  • 2022
  • FAQs
  • Articles
  • Search
  • Contact
  • 2022
  • FAQs
  • Articles
  • Latest Medicare News
  • Search


Medicare announces increases in 2022 Medicare Part A and Part B Premiums and Deductibles

Category: General Medicare
Published on 2021-11-12 10:13:50


On November 12, 2021, Medicare announced that Medicare Part A and Medicare Part B premiums and deductibles would increase in 2022.  The Medicare Part B premium increases were rather large as compared to past increases and Medicare provided a series of explanations for the increase and how the Part B premium increases would be more-than offset by the large 2022 Social Security Benefit cost-of-living increases.

A summary of the changes to 2022 Medicare Part A and Medicare Part B premiums and deductibles includes:
  • Cost-of-Living Adjustment (COLA) Increase for Social Security and Supplemental Security Income (SSI) Benefits.

    On October 13, 2021, the Social Security Administration announced the 2022 Social Security benefits cost-of-living adjustment (COLA)  equating to a 5.9 percent increase in the 2022 Social Security benefits for 70 million people.  And in the November 12, 2021 press release (below), the Centers for Medicare and Medicaid Services (CMS) added that "[t]his significant COLA increase will more than cover the increase in the [2022] Medicare Part B monthly premium."

  • Increase in 2021 Medicare Part B Premiums.

    Based on the August 2021 governmental analysis, the 2022 Medicare Part B premium was projected to increase to $158.50.  However, the standard 2022 Medicare Part B premium will actually increase to $170.10 - a $21.60 increase per month over the 2021 Medicare Part B premium of $148.50.  (The 2020 Medicare Part B premium was $144.60 and the 2019 Part B premium was $135.50).  CMS attributes the Part B premium increase to several factors including the possible introduction of costly Alzheimer’s drugs (i.e., Aduhelm™) "requiring additional contingency reserves".

  • Increase in the 2022 Part B Deductible.

    The annual 2022 deductible for all Medicare Part B beneficiaries is $233 - an increase of $30 from the annual 2021 deductible of $203 (the annual Part B deductible in 2020 was $198 and the Part B deductible in 2019 was $185).

  • 2022 IRMAA increases for some - Higher Part B Premiums for High-Earners.

    People with higher incomes will pay more for their Medicare Part B coverage (and their Medicare Part D drug plan coverage).  Along with higher 2022 Part B premiums, the Part B Income-related monthly adjustment amount (IRMAA) will increase for some individuals earning over $91,000 or couples earning over $182,000.  To learn more, see our article:
    2022 IRMAA: Slight increase in Medicare Part D IRMAA payments for most along with changes in the IRMAA brackets due to annual inflation adjustments.

  • Increase in 2022 Medicare Part A Deductible.

    The 2022 Medicare Part A deductible will be $1,556 in 2022, an increase of $72 from $1,484 in 2021 (the Part A deductible was $1,408 in 2020 and the 2019 Part A deductible was $1,364).

  • Increase in 2022 Medicare Part A Premium for certain Medicare beneficiaries.

    As noted by CMS: "Individuals who had at least 30 quarters of coverage or were married to someone with at least 30 quarters of coverage may buy into Part A at a reduced monthly premium rate, which will be $274 in 2022, a $15 increase from 2021. Certain uninsured aged individuals who have less than 30 quarters of coverage and certain individuals with disabilities who have exhausted other entitlement will pay the full premium, which will be $499 a month in 2022, a $28 increase from 2021."
And, in More Detail . . .

The Centers for Medicare & Medicaid Services (CMS) press release and accompanying CMS Fact Sheet detailing changes in the 2022 Medicare Part A and Part B premiums, deductibles, and coinsurance amounts and included the following (with emphasis added):

CMS Announces 2022 Medicare Part B Premiums
Today, the Centers for Medicare & Medicaid Services (CMS) released the 2022 Medicare Parts A and B premiums, deductibles, and coinsurance amounts, and the 2022 Part D income-related monthly adjustment amounts. Most people with Medicare will see a 5.9 percent cost-of-living adjustment (COLA) in their 2022 Social Security benefits—the largest COLA in 30 years. This significant COLA increase will more than cover the increase in the Medicare Part B monthly premium.

Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered by Medicare Part A. The increase in the standard monthly premium—from $148.50 in 2021 to $170.10 in 2022—is based in part on the statutory requirement to prepare for expenses, such as spending trends driven by COVID-19, and prior Congressional action in the Continuing Appropriations Act, 2021 that limited the 2021 Medicare Part B monthly premium increase during the COVID-19 pandemic. It also reflects the need to maintain a contingency reserve for unanticipated increases in health care spending, particularly certain drug costs. There is significant uncertainty regarding the potential for future coverage of clinician-administered Alzheimer’s drugs (i.e., Aduhelm™), requiring additional contingency reserves. Potential Medicare drug coverage is currently the subject of a Medicare National Coverage Determination (NCD) analysis, which, if covered, could increase Medicare spending. The proposed NCD on Aduhelm (as well as any drugs in this category) is still to be determined.

Most people with Medicare will see a significant net increase in Social Security benefits. For example, a retired worker who currently receives $1,565 per month from Social Security can expect to receive a net increase of $70.40 more per month after the Medicare Part B premium is deducted.           

“CMS is committed to ensuring high quality care and affordable coverage for those who rely on Medicare today, while protecting Medicare’s sustainability for future generations," said CMS Administrator Chiquita Brooks-LaSure. “The increase in the Part B premium for 2022 is continued evidence that rising drug costs threaten the affordability and sustainability of the Medicare program. The Biden-Harris Administration is working to make drug prices more affordable and equitable for all Americans, and to advance drug pricing reform through competition, innovation, and transparency.”

By law, the Medicare Part B monthly premium must equal 25 percent of the estimated total Part B costs for enrollees age 65 and over. CMS has a responsibility to establish an annual Part B premium that will adequately fund projected Medicare spending and maintain an adequate reserve in case actual costs are higher than estimated.

The annual deductible for Medicare Part B beneficiaries grows with the Part B financing and is increasing from $203 in 2021 to $233 in 2022.

The Administration is taking action to address the rapidly increasing drug costs that are posing a threat to the future of the Medicare program and that place a burden on people with Medicare. President Biden has proposed to lower prescription drug costs for Americans by letting Medicare negotiate drug prices as part of his Build Back Better agenda. In addition, Department of Health and Human Services Secretary Xavier Becerra released a comprehensive plan  to lower drug prices as part of President Biden’s Executive Order on Promoting Competition in the American Economy. The plan includes legislative and administrative proposals to reduce drug costs in Medicare Parts B and D."

Medicare Part B Income-Related Monthly Adjustment Amounts (IRMAA)
Since 2007, a beneficiary’s Part B monthly premium is based on his or her income. These income-related monthly adjustment amounts  [IRMAA] affect roughly 7 percent of people with Medicare Part B [and include individuals earning over $91,000 and couples earning over $182,000].<
The 2022 Part B premiums for high-earning Medicare beneficiaries are shown in our article:
2022 IRMAA: Slight increase in Medicare Part D IRMAA payments for most along with changes in the IRMAA brackets due to annual inflation adjustments.


Medicare Part A Premiums and Deductibles
Medicare Part A covers inpatient hospital, skilled nursing facility, and some home health care services. About 99 percent of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment.

The Medicare Part A inpatient hospital deductible that beneficiaries pay if admitted to the hospital will be $1,556 in 2022, an increase of $72 from $1,484 in 2021 (and $1,408 in 2020). The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period.  In 2022, beneficiaries must pay a coinsurance amount of $389 per day for the 61st through 90th day of a hospitalization ($371 in 2021) in a benefit period and $778 per day for lifetime reserve days ($742 in 2021). For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period will be $194.50 in 2022 ($185.50 in 2021).
Part A Deductible and Coinsurance Amounts for Calendar Years 2019, 2020, 2021, and 2022
by Type of Cost Sharing
  2019 2020 2021 2022
Inpatient hospital deductible $1,364 $1,408 $1,484 $1,556
Daily coinsurance for 61st-90th Day $341 $352 $371 $389
Daily coinsurance for lifetime reserve days $682 $704 $742 $778
Skilled Nursing Facility coinsurance $170.50 $176 $185.50 $194.50
Enrollees age 65 and over who have fewer than 40 quarters of coverage and certain persons with disabilities pay a monthly premium in order to voluntarily enroll in Medicare Part A. Individuals who had at least 30 quarters of coverage or were married to someone with at least 30 quarters of coverage may buy into Part A at a reduced monthly premium rate, which will be $274 in 2022, a $15 increase from 2021. Certain uninsured aged individuals who have less than 30 quarters of coverage and certain individuals with disabilities who have exhausted other entitlement will pay the full premium, which will be $499 a month in 2022, a $28 increase from 2021.

Sources include:
https://www.cms.gov/newsroom/press-releases/cms-announces-2022-medicare-part-b-premiums
https://www.cms.gov/newsroom/press-releases/2021-medicare-part-b-premiums-remain-steady
https://www.cms.gov/newsroom/fact-sheets/2022-medicare-parts-b-premiums-and-deductibles 2022-medicare-part-d-income-related-monthly-adjustment
https://www.cms.gov/newsroom/fact-sheets/2021-medicare-parts-b-premiums-and-deductibles
https://www.medicare.gov/your-medicare-costs/medicare-costs-at-a-glance
https://www.cms.gov/files/document/2021-medicare-trustees-report.pdf






Medicare Supplements
fill the gaps in your
Original Medicare
1. Enter Your ZIP Code:
» Medicare Supplement FAQs




Prescription Discounts for the Whole Family
Prescription Discounts are
easy as 1-2-3
  1. Locate lowest price drug and pharmacy
  2. Show card at pharmacy
  3. Get instant savings!
Your drug discount card is available to you at no cost.




Tips & Disclaimers
  • The Medicare Advantage and Medicare Part D prescription drug plan data on our site comes directly from Medicare and is subject to change.
  • Medicare has neither reviewed nor endorsed the information on our site.
  • We provide our Q1Medicare.com site for educational purposes and strive to present unbiased and accurate information. However, Q1Medicare is not intended as a substitute for your lawyer, doctor, healthcare provider, financial advisor, or pharmacist. For more information on your Medicare coverage, please be sure to seek legal, medical, pharmaceutical, or financial advice from a licensed professional or telephone Medicare at 1-800-633-4227.
  • We are an independent education, research, and technology company. We are not affiliated with any Medicare plan, plan carrier, healthcare provider, or insurance company. We are not compensated for Medicare plan enrollments. We do not sell leads or share your personal information.
  • Benefits, formulary, pharmacy network, provider network, premium and/or co-payments/co-insurance may change on January 1 of each year. Our PDP-Compare.com and MA-Compare.com provide highlights of annual plan benefit changes.
  • The benefit information provided is a brief summary, not a complete description of benefits. For more information contact the plan.
  • Limitations, copayments, and restrictions may apply.
  • We make every effort to show all available Medicare Part D or Medicare Advantage plans in your service area. However, since our data is provided by Medicare, it is possible that this may not be a complete listing of plans available in your service area. For a complete listing please contact 1-800-MEDICARE (TTY users should call 1-877-486-2048), 24 hours a day/7 days a week or consult www.medicare.gov.
  • When enrolling in a Medicare Advantage plan, you must continue to pay your Medicare Part B premium.
  • Medicare beneficiaries with higher incomes may be required to pay both a Medicare Part B and Medicare Part D Income Related Monthly Adjustment Amount (IRMAA). Read more on IRMAA.
  • Medicare Advantage plans that include prescription drug coverage (MAPDs) are considered Medicare Part D plans and members with higher incomes may be subject to the Medicare Part D Income Related Monthly Adjustment Amount (IRMAA), just as members in stand-alone Part D plans. In certain situations, you can appeal IRMAA.
  • You must be enrolled in both Medicare Part A and Part B to enroll in a Medicare Advantage plan. Members may enroll in a Medicare Advantage plan only during specific times of the year. Contact the Medicare plan for more information.
  • If you are enrolled in a Medicare plan with Part D prescription drug coverage, you may be eligible for financial Extra Help to assist with the payment of your prescription drug premiums and drug purchases. To see if you qualify for Extra Help, call: 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048, 24 hours a day/ 7 days a week or consult www.medicare.gov; the Social Security Office at 1-800-772-1213 between 7 a.m. and 7 p.m., Monday through Friday. TTY users should call, 1-800-325-0778; or your state Medicaid Office.
  • Medicare evaluates plans based on a 5-Star rating system. Star Ratings are calculated each year and may change from one year to the next.
  • A Medicare Advantage Private Fee-for-Service plan (PFFS) is not a Medicare supplement plan. Providers who do not contract with the plan are not required to see you except in an emergency.
  • Disclaimer for Institutional Special Needs Plan (SNP): This plan is available to anyone with Medicare who meets the Skilled Nursing Facility (SNF) level of care and resides in a nursing home.
  • Disclaimer for Dual Eligible (Medicare/Medicaid) Special Needs Plan (SNP): This plan is available to anyone who has both Medical Assistance from the State and Medicare. Premiums, co-pays, co-insurance, and deductibles may vary based on the level of Extra Help you receive. Please contact the plan for further details.
  • Disclaimer for Chronic Condition Special Needs Plan (SNP): This plan is available to anyone with Medicare who has been diagnosed with the plan specific Chronic Condition.
  • Medicare MSA Plans combine a high deductible Medicare Advantage Plan and a trust or custodial savings account (as defined and/or approved by the IRS). The plan deposits money from Medicare into the account. You can use this money to pay for your health care costs, but only Medicare-covered expenses count toward your deductible. The amount deposited is usually less than your deductible amount, so you generally have to pay out-of-pocket before your coverage begins.
  • Medicare MSA Plans do not cover prescription drugs. If you join a Medicare MSA Plan, you can also join any separate (stand-alone) Medicare Part D prescription drug plan
  • There are additional restrictions to join an MSA plan, and enrollment is generally for a full calendar year unless you meet certain exceptions. Those who disenroll during the calendar year will owe a portion of the account deposit back to the plan. Contact the plan provider for additional information.
  • Medicare beneficiaries may enroll through the CMS Medicare Online Enrollment Center located at www.medicare.gov.
  • Medicare beneficiaries can file a complaint with the Centers for Medicare & Medicaid Services by calling 1-800-MEDICARE 24 hours a day/7 days or using the medicare.gov site. Beneficiaries can appoint a representative by submitting CMS Form-1696.