MEDICARE NEWS
How much is taken out of your Social Security check for Medicare?
The Medicare Part A and B premiums for 2022 have been announced. How much will Social Security beneficiaries see subtracted from their monthly checks?
On 12 November, the Center for Medicare and Medicaid (CMM) released the 2022 premium prices and deductibles for Medicare Parts A and B.
Across the board, those on Medicare will pay more for their care. The price of the premium for Medicare Part B, which most members are required to pay, will increase fifteen percent from $148.50 to $171. This increase is almost triple the Social Security Cost-of-living adjustment (COLA) those on social security will see reflected in their benefits next year.
Medicare Part B
The premium for Medicare Part B is typically deducted from a person's social security check. However, since 2007, the premium paid for Part B is based on a person's total income. With most beneficiaries having an income under $91,000, most pay the standard price.
What are the Medicare Part B premiums for each income group?
| File individual tax return | File joint tax return | File married & separate tax return | Monthly Total | ||||
| 2021 | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | 2022 |
|
$88,000 or less |
$91,000 or less | $176,000 or less | $182,000 or less | $88,000 or less | $91,000 or less | $148.50 | $170 |
| $88,000 to $111,000 | $91,000 to $114,000 | $176,000 to $222,000 | $182,000 to $228,000 | N/A | N/A | $207.90 | $238.10 |
| $111,000 to $138,000 | $114,000 to $142,000 | $222,000 to $276,000 | $228,000 to $284,000 | N/A | N/A | $297.00 | $340.20 |
| $138,000 to $165,000 | $142,000 to $170,000 | $276,000 to $330,000 | $284,000 to $340,000 | N/A | N/A | $386.10 | $442.30 |
| $165,000 to $500,000 | $170,000 to $500,000 | $330,000 to $750,000 | $340,000 to $750,000 | $88,000 and less than $412,000 | $91,000 and less than $409,000 | $475,20 | $544.30 |
| $500,000 and up | $500,000 and up | $750,000 and up | $750,000 and up | $412,000 and above | $409,000 and above | $504.90 | $578.30 |
Source: Medicare.gov
In 2021, based on the average social security benefit of $1,514, a beneficiary paid around 9.8 percent of their income for the Part B premium. Next year, that figure will increase to 10.6 percent.
This means that the average beneficiary will see never see ten percent of their total income, before accounting for the other health care costs they may have to pay throughout the year.
Deductible increases
In addition to premiums, the CMM also announced an increase to the Part B deductible.
The deductable refers to the amount a member is expected to pay before their coverage kicks in.
The deductible will increase from $203 to $230 in 2022. After the deductible has been reached, members will be required to pay twenty percent of the costs for various services including, most doctor services, outpatient therapy, and medical equipment.
What is causing the increase in costs?
The CMM provided a series of reasons as to why the price is increasing.
The first is that each year based on the continuous increase in the costs of providing health care. Each year, the premium increases a small amount to reflect this market-wide trend. However, from 2020 to 2021, the price only increased two percent, whereas from 2021 to 2022 it will be more than fifteen percent.
Another reason relates to Congressional action to lower the cost of premiums in 2021, "which resulted in the $3.00 per beneficiary per month increase in the Medicare Part B premium (that would have ended in 2021) being continued through 2025."
Medicare Part A
Ninety-nine percent of Medicare members do not pay a premium for Part A. For the few that do purchase Part A coverage, it will cost $499 next year.