What are the 2022 Medicare premiums?
The Social Security Administration has yet to release all the details over the changes to Medicare premiums that will be seen next year. What is know so far?
Those who receive social security are automatically enrolled in Medicare Parts A and B. Part A covers hospital visits and other intensive medical needs. In contrast, Part B covers doctor's appointments and other essential medical services. The Social Security Administration (SSA) deducts the premiums for these parts from your total benefit amount each month.
2021 Medicare Premiums
For Medicare Part A, the premium depends on the number of work credits you acquire throughout your career. These credits also help the SSA determine your Social Security benefit amount.
For those with less than thirty credits, the monthly premium is $471.
For those who acquired between thirty and thirty-nine credits, the premium dropped to $259.
Lastly, there is no monthly premium associated with Part A for those who acquired forty credits before claiming their Medicare benefits.
For Part B, the premium for the vast majority of beneficiaries is $148.50.
The premiums for Medicare Part C and D vary widely as they are paid to a third party and depend on the beneficiary's location. Part C covers Medicare Advantage programs that allow seniors to purchase health care plans that include vision, dental, hearing, and more. Part D, which is the newest component of Medicare, can be purchased by seniors to reduce the costs of prescription drugs.
2022 Medicare Premiums
The exact amounts the premiums are expected to increase have not been announced. Typically this information is released in late October or early November.
However, the Center for Medicare and Medicaid (CMM) has released information on the premiums for Parts C and D. In a press release put out in late September, the agency noted that in 2022 "the average premium for Medicare Advantage plans will be $19 per month. In 2021, the average has stood around $21.
Enrollment in Medicare Advantage Plans continues to increase
This decrease in the cost of premiums is expected to drive up registration in the program. Currently, there are just over 26 million people enrolled in a Medicare Advantage Plan. The CMM projects that this figure could reach just under 30 million next year -- the largest number on record.
Enrollment in these programs has steadily increased since they were established in 2003.
In more recent years, individuals with a chronic illness have been driving the surge in enrollment. However, these beneficiaries can sometimes have trouble finding a plan that is willing to offer them coverage. To combat this issue, the CMM has worked with third parties to expand coverage, and they announced that next year "plans offering special supplemental benefits for chronically ill individuals will increase from 19% to 25%."
The CMM had announced earlier that the average premium for Medicare Part D is expected to increase from $31.47 in 2021 to around $33 next year.