Changes to Medicare

We will see several significant changes to Medicare in 2022. As far as expanded benefits, beneficiaries will see more access to things like mental health coverage and insulin. According to AARP, Part D enhanced plans, which can cap the cost of insulin at $35 a month, will now be available in every state.

Mental health care through telehealth is also expanding, with counseling and therapy set to become more widely available to beneficiaries across the country.

While Medicare benefits have expanded, costs have also risen. The Medicare Part B premium saw its biggest jump in history, rising to $170.10 from its 2021 cost of $148.50. The Part B deductible also increased by $30 to $233 for 2022.

The Part A hospital deductible is also on the rise, jumping $72 to $1,556. The Part A premium, which very few beneficiaries have to pay, is $274.

Medicare Part A covers your inpatient care, including hospital stays or time in a skilled nursing facility. Part A is premium-free for 99% of beneficiaries. You would only have to pay a premium if you don’t have at least 40 quarters of Medicare-covered employment.

The Medicare Part A deductible increased by $72 — up to $1,556 for each benefit period in 2022. A benefit period begins on your first day of hospitalization and lasts for 60 days after you leave. Once your benefit period ends, your deductible starts over.

Medicare Part A coinsurance generally comes into play with extended hospital or care facility stays. Your share of the costs increases the longer you are hospitalized.

According to the U.S. Centers for Medicare & Medicaid Services, the 2022 Part B premium increase is the largest in history. There are several factors that led to the historic jump. When the new figures were released, Medicare was still determining whether the new Alzheimer’s drug Aduhelm would be covered, which could have significantly increased annual expenses given the drug’s price and number of beneficiaries who would qualify for it.

The rise of Medicare costs was also spurred by congressional action last year to lower the 2021 premium, as well as the typical rising prices across health care that prompt the smaller cost increases beneficiaries see annually.

The monthly premium you pay increases based on your annual income. The premium is $170.10 for individuals who make less than $91,000 and couples who make less than $182,000.

The Medicare Part B deductible increased by $30 to $233 in 2022.

Medicare Advantage plans — sometimes called Medicare Part C — are sold by private insurance companies that contract with Medicare. These plans include everything covered under Original Medicare plus expanded benefits like vision and dental.

The average monthly premium for a Medicare Advantage plan in 2022 is $19, a slight drop from the 2021 figure of $21.22. The number of plans available has increased by 8%, with 90% of plans also including prescription drug coverage.

According to a Kaiser Family Foundation report on Medicare Advantage updates, the average beneficiary will have access to 39 different Medicare Advantage plans in 2022, which is more than recent years. Medicare Advantage plans are available regionally, so beneficiaries who live in populated areas will have the most options to choose from.

Medicare Part D prescription drug plan premiums vary by plan. You’ll need to check with your plan to find out about these changes. The average premium for a plan in 2022 is $33 per month, up from $31.47 in 2021.

There are many options available for drug coverage in 2022, with the average beneficiary having 54 plans to choose from. There is also a higher availability of insulin demonstration plans, with 2,159 Part D plans participating in this model.

Remember that many Medicare Advantage plans include prescription drug coverage. In 2022, there are 15% more Medicare Advantage plans that include drug coverage, but a 23% decrease in Part D plans.

Medigap — also known as Medicare Supplement insurance — helps you cover out-of-pocket costs that Original Medicare doesn’t cover.

The Medigap deductible increased to $2,490 in 2022, which is an increase from its 2021 figure of $2,370. There are several different Medigap policies with different costs and coverage. Insurance companies do not all sell the same plans.

It’s also important to remember that you can pair Medigap with Original Medicare, but not with a Medicare Advantage plan.

Medicare undergoes changes yearly. Most of these changes affect you in the amount of money you have to spend or the benefits you receive.

Every so often, Medicare changes have a major, historical impact on the federal government’s health care plan.

According to CMS, total Medicare enrollment as of October 2021 is at nearly 64 million. That includes nearly 28 million enrollees in Medicare Advantage or other health plans. Medicare Part D enrollment is just over 49 million.