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The Centers for Medicare & Medicaid Services has announced increases in premiums, deductibles, and coinsurance for Medicare Parts A and B in 2022, as well as new income-related adjustments for Medicare Part D drug coverage. Here’s a quick summary of what to expect if you participate in these programs.
Key Takeaways
- Premiums, deductibles, and coinsurance for Medicare Parts A and B will increase in 2022.
- The income-related adjustments for some Medicare Part D participants are rising too.
- The Centers for Medicare & Medicaid Services blames rising healthcare costs and other factors.
How Medicare Costs Will Rise in 2022
Each year, the Centers for Medicare and Medicaid Services adjusts the costs that Medicare recipients must pay in the form of premiums, deductibles, and coinsurance. Here’s a breakdown of the new numbers for 2022.
Medicare Part A
Medicare Part A covers inpatient hospital, skilled nursing facility, hospice, and inpatient rehabilitation care, as well as some home healthcare services. According to the federal government, roughly 99% of Medicare beneficiaries don’t have to pay a premium for Part A coverage because they meet the employment requirement (meaning that they paid Medicare payroll taxes for a sufficient number of years).
For those who don’t meet that requirement and must pay for Part A, here’s what to expect:
- Individuals who are age 65 or older and have at least 30 quarters of coverage, or are married to someone with at least 30 quarters of coverage may buy into Part A at a reduced monthly premium of $274 in 2022. That’s a $15 increase from 2021.
- Certain older individuals who have less than 30 quarters of coverage and certain individuals with disabilities who have exhausted other entitlement must pay the full premium of $499 a month in 2022, a $28 increase from 2021.
Additionally, Part A deductibles and coinsurance will be higher than in 2021, as the following table indicates:
| Part A Deductibles and Coinsurance for 2021 vs. 2022 | ||
|---|---|---|
| 2021 | 2022 | |
| Inpatient hospital deductible | $1,484 | $1,556 |
| Daily coinsurance for the 61st to 90th day | $371 | $389 |
| Daily coinsurance for lifetime reserve days | $742 | $778 |
| Skilled nursing facility coinsurance | $185.50 | $194.50 |
Medicare Part B
Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services that aren’t covered by Medicare Part A.
The Centers for Medicare & Medicaid Services attributes increased costs related to Part B to rising prices and utilization across the U.S. healthcare system. among other factors.
The standard monthly premium for Medicare Part B will be $170.10 in 2022, an increase of $21.60 from 2021. The annual deductible will be $233, an increase of $30. After meeting the annual deductible, Part B recipients typically pay coinsurance equal to 20% of the Medicare-approved amount for most services.
While many Part B recipients pay the standard monthly premium, those with higher incomes pay more. The following table shows premiums for 2022, based on modified adjusted gross income (MAGI) and tax-filing status:
| Medicare Part B Monthly Premiums for 2022 | ||
|---|---|---|
| Individual Tax Return | Joint Tax Return | Monthly Premium |
| $0 – $91,000 | $0 – $182,000 | $170.10 |
| $91,001 – $114,000 | $182,001 – $228,000 | $238.10 |
| $114,001 – $142,000 | $228,001 – $284,000 | $340.20 |
| $142,001 – $170,000 | $284,001 – $340,000 | $442.30 |
| $170,001 – $499,999 | $340,001 – $749,999 | $544.30 |
| $500,000 or more | $750,000 or more | $578.30 |
For Medicare Part B enrollees who are married but file separate returns, the premium is $170.10 for those with a modified adjusted gross income of $91,000 or less, $544.30 for those with a MAGI greater than $91,000 and less than $409,000, and $578.30 for those with a MAGI of $409,000 or more.
Medicare Part D
Medicare Part D provides coverage for prescription medications. For 2022, the Centers for Medicare & Medicaid Services announced changes to the income-related monthly adjustments that will affect about 8% of enrollees. (The premiums themselves will vary from plan to plan.) Again, the numbers in the following table are based on your modified adjusted gross income:
| Medicare Part D Income-Related Monthly Adjustment Amounts | ||
|---|---|---|
| Individual Tax Return | Joint Tax Return | Monthly Adjustment |
| $0 – $91,000 | $0 – $182,000 | $0 |
| $91,001 – $114,000 | $182,001 – $228,000 | $12.40 |
| $114,001 – $142,000 | $228,001 – $284,000 | $32.10 |
| $142,001 – $170,000 | $284,001 – $340,000 | $51.70 |
| $170,001 – $499,999 | $340,001 – $749,999 | $71.30 |
| $500,000 or more | $750,000 or more | $77.90 |
For enrollees who are married but file separate tax returns, the adjustment is $0 for those with a MAGI of $91,000 or less, $71.30 for those with a MAGI greater than $91,000 and less than $409,000, and $77.90 for those with a MAGI of $409,000 or more.
