As you know, Medicare rates change annually, so it’s important to stay up-to-date on premiums, deductibles, and more. In 2022, there are some big changes when it comes to what Medicare beneficiaries will have to pay for their care, as well as what coverage options they will have available to them. Read on to learn about all of the new Medicare updates in 2022.
Medicare Part B Premium and Deductible
Perhaps one of the biggest Medicare updates in 2022 is the Part B monthly premium, as the Medicare Part B premium will see an increase of 14.5% from its 2021 rate of $148.50. In 2022, the Medicare Part B premium is set at $170.10. That is $21.60 more per month than in 2021, totaling up to almost $260 more per year.
The Medicare Part B deductible will also face increases, as it will jump to $233 in 2022 (up from $203 in 2021). This represents a 14.8% increase. Remember, you have to pay a deductible for your Part B insurance before Medicare starts to pay your covered benefits. Medicare Part B covers physician services, durable medical equipment, certain home health services, and more.
Medicare Part A Deductible
The Medicare Part A deductible will also see an increase in 2022, and it will be set at $1,556. This is up $72 from $1,484 in 2021. Remember, Medicare Part A is the part of Original Medicare that helps to cover things like inpatient care, care in Skilled Nursing Facilities, home health care, hospice care, and more.
You are responsible for paying the Medicare Part A deductible during each benefit period, and your benefit period resets 60 days after being discharged from the hospital. If you are admitted to the hospital after those 60 days have passed, you will once again be responsible for covering your Part A deductible.
Medicare Advantage Plan Updates
Medicare Advantage will also see some changes in 2022 that will give beneficiaries more plan options than in previous years. In 2021, there were over 26 million Medicare beneficiaries enrolled in Medicare Advantage plans. This represented over 40% of the Medicare population.
In 2022, the average Medicare Advantage beneficiary has access to 39 plans, which is more plans than beneficiaries have had available to them in over a decade. There are 3,834 Medicare Advantage plans on the market in 2022, which is up from 3,550 plans from 2021. This represents an 8% increase in plan availability… that’s almost 300 more plans!
Plus, 89% of Medicare Advantage plans will offer prescription drug coverage in 2022. Remember, Medicare Advantage plans can often come with other extra benefits like vision, dental, and hearing coverage.
Medicare Part D Updates
There are also some updates that you should be aware of when it comes to Medicare drug plans in 2022. There are actually fewer stand-alone drug plans offered in 2022 than in 2021. In 2022, there will be a total of 766 Medicare stand-alone drug plans. This is down 23% from 2021, mainly because of the consolidation of Cigna and Centene plan offerings.
And with this decrease in Part D plan offerings comes higher rates for beneficiaries. The average weighted monthly PDP premium is increasing to $43 dollars in 2022 (up from $38 in 2021). In fact, over 70% of Medicare beneficiaries enrolled in a stand-alone PDP will see their monthly premium increase in 2022 if they stay in the same plan. For over a quarter of these beneficiaries, the increase will be $10 or more.
Also, the standard maximum Part D deductible will also increase in 2022 to $480. That is up from $455 in 2021. However, the average PDP deductible in 2022 will be $384.
As you can see, it is crucial to stay informed about annual changes in premiums, deductibles, and plan offerings. If you don’t check your Medicare health and drug benefits each year, you may end up paying more than you have to for your coverage.
If you would like help analyzing your current Medicare coverage and exploring your possible plan options, reach out to a licensed insurance agent here at Medicare Plans Direct. We can help you to research your coverage options and give you more information about how you can lower your Medicare costs.
