IMPORTANT:

2022 Medicare Changes Summary:

Starting January 1st, 2022:

  • The standard Part B Premium is $170.10/month.
  • About 3.5% of enrollees will pay less for Part B.
  • New Medicare Part B high-income bracket for enrollees with income above $500,000.
  • Medicare Part A premiums, deductible, and coinsurance are higher in 2022.
  • Part D basic premiums decreasing; more part D plans available, donut hole closing early for brand-name drugs.

2022 Medicare Part A Changes:

Starting January 1st, 2022:

  • Medicare Part A inpatient deductible for hospital admittance will increase from $1,484 to  $1,556.
  • The Medicare Part A premium for people with 30+ (but less than 40) quarters of work history, the premium for Part A is increasing from $259/month to $274/month.
  • The Medicare Part A premium for people with fewer than 30 quarters of work history, the premium for Part A is increasing from $471/month to $499/month.
  • Part A has a deductible that applies to each benefit period (rather than a calendar year deductible like Part B or private insurance plans) is increasing from $1,484 to $1,556*. 

*This increase applies to all enrollees, although many enrollees have supplemental coverage that pays all or part of the Part A deductible.

  • The Part A deductible covers the enrollee’s first 60 inpatient days during a benefit period. If the enrollee needs additional inpatient coverage during that same benefit period, there’s a daily coinsurance charge. In 2022, it’s $389 per day for the 61st through 90th day of inpatient care (up from $371 per day in 2021). The coinsurance for lifetime reserve days is $788 per day in 2022 (up from $742 per day in 2021).
  • For care received in skilled nursing facilities, the first 20 days are covered with the Part A deductible that was paid for the inpatient hospital stay that preceded the stay in the skilled nursing facility (Medicare only covers skilled nursing facility care if the patient had an inpatient hospital stay of at least three days before being transferred to a skilled nursing facility). But there’s a coinsurance that applies to days 21 through 100 in a skilled nursing facility. In 2022, it’s $194.50 per day, up from $185.50 per day in 2021.

2022 Medicare Part B Changes:

Starting January 1st, 2022:

  • The standard monthly premium of Medicare Part B will increase from $148.50/month to $170.10/month.
  • The annual deductible for Medicare Part B will be $233.
  • A new high-income bracket has been added dividing the bracket into two new brackets:
    1. Above $170,000 and less than $500,000
    2. $500,000 or above

2022 Medicare Part D Changes:

Starting January 1st, 2022:

  • For stand-alone Part D prescription drug plans, average basic premiums increased to a projected average premium of $33.37/month.*

*It’s important to understand that the average basic premium is less than the average enhanced plan premium, so overall average Part D premiums are higher than the average basic premiums.

  • There’s also a significant increase in the number of Part D plans available in 2022, but Kaiser Family Foundation notes that is likely due to the fact that CMS eliminated the meaningful difference requirement for Part D plans, allowing a single insurer to offer more plans than they’ve had in the past.
  • Most Medicare drug plans have a coverage gap (also called the “donut hole”).  This means there is a temporary limit on what the drug plan will cover for drugs.  Not everyone will enter the coverage gap. The coverage gap begins after you and your drug plan have spent a certain amount on covered drugs.
  • In 2021, the coverage gap applied after an initial amount of $4,130 was spent. In 2022, the coverage gap applies after an initial amount of $4,430 is spent.  The good news is that the Affordable Care Act (ACA) has been gradually closing the coverage gap in Medicare Part D.  The percentage is set by Medicare. In 2022, once the coverage gap starts, Medicare members only have to pay 25% for both brand-name and generic prescriptions.
  • The maximum allowable deductible for standard Part D plans increased from $445 to $480.