MEDICARE OPEN ENROLLMENT

What and when is the Medicare special enrollment period?

Medicare open enrollment started on 15 October and those eligible will have until 7 December to select a Medicare Advantage or Part D prescription drug plan

Medicare open enrollment started on 15 October and those eligible will have until 7 December to select a Medicare Advantage or Part D prescription drug plan
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Maite Knorr-Evans
Maite joined the AS USA in 2021, bringing her experience as a research analyst investigating illegal logging to the team. Maite’s interest in politics propelled her to pursue a degree in international relations and a master's in political philosophy. At AS USA, Maite combines her knowledge of political economy and personal finance to empower readers by providing answers to their most pressing questions.
Update:

Each year those eligible for Medicare have several weeks to enroll and update their plan selection. The open enrollment period began on Friday, 15 October, and will come to a close on 7 December.

When one reaches the age of sixty-five and claims their Social Security benefits, they are enrolled in Medicare Part A and B. During open enrollment, seniors have the choice to select a Medicare Advantage Plan or Part D, prescription drug plan.

There are three major “Parts” of Medicare:

What are the various 'Parts' of Medicare?

  • Part A: which covers hospital stays, skilled nursing, and hospice services;
  • Part B: which covers outpatient services, most doctors visits, and most drugs that need to be administered by medical professionals; and
  • Part D: which covers most “self-administered” prescriptions.

Some seniors elect to add additional coverage for things like vision and dental through a Part C or Medicare Advantage plan.

How much were the Medicare Part A and B premiums in 2021?

The Center for Medicare and Medicaid Services (CMS) has yet to announce the premiums for Part A and B for 2022.

Part A

The majority of those who receive Medicare benefits do not pay a premium for Part A. There are three main reasons why some are eligible to receive premium-free benefits; 

  • You receive retirement benefits from Social Security or the Railroad Retirement Board.
  • You are "eligible to get Social Security or Railroad benefits but haven't filed for them yet."
  • You or your spouse has Medicare-covered government employment.

In 2021,  those who did not fall into these categories can buy Part A coverage for

  • $471-- paid Medicare taxes for less than thirty quarters
  • $259 -- paid Medicare taxes for between thirty and thirty-nine quarters. 

Part B

Medicare Part B Premiums

File individual tax returnFile joint tax returnFile married & separate tax returnMonthly Total
$88,000 or less$176,000 or less$88,000 or less$148.50
$88,000 to $111,000$176,000 to $222,000N/A$207.90
$111,000 to $138,000$222,000 to $276,000N/A$297.00
$138,000 to $165,000$276,000 to $330,000N/A$386.10
$165,000 to $500,000$330,000 to $750,000$88,000 and less than $412,000$475,20
$500,000 and up$750,000 and up$412,000 and above$504.90

Source: Medicare.gov

This year, the vast majority of Medicare members paid $148.50 for Part B coverage.

However, the amount owed depends on your annual income. Each month the Social Security Administration will subtract any premiums for Part A and B from your benefit amount.

Changes to Medicare Part C and D in 2022

While the CMS has yet to announce the 2022 premiums for Parts A and B, they have released information on the changes members can expect to see with Parts C and D.

Part C -- Medicare Advantage Plans

Currently around a third of Medicare members are enrolled in a Part C Medicare Advantage Plan.

The CMS has announced that they will expand the availability of Medicare Advantage Plans for those with a chronic illnesses. Starting in 2022, the percentage of plans available to those with a chronic condition will increase from nineteen to twenty-five percent. The average monthly premium in 2022 for Medicare Advantage will decrease from $21.22 to $19 per month.

Part D

The CMS has announced that they will continue moving forward with a new model that aims to lower the cost of insulin for Medicare members.

Related stories

This year, the Part D Senior Savings Model  will add two additional pharmaceutical suppliers and the CMS has announced that this will supply will ensure members have access to "a thirty-day supply of a broad set of plan-formulary insulins costs no more than $35."

Overall, however, premiums for Part D plans are expected to increase to $33 compared to $31.74 in 2021.

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