Earlier this month, the Centers for Medicare and Medicaid Services (CMS) released the 2022 premiums, deductibles and coinsurance amounts for Medicare Parts A and B, as well as the Income Related Monthly Adjusted Amount (IRMAA) adjustments for Part D.
Medicare Part A, which for most beneficiaries is premium-free, includes the following changes:
- Hospital deductible is $1,556, an increase of $72 from 2021.
- Daily coinsurance for days 21-100 of extended care services is $194.50, and increase of $9 from 2021.
- 2022 Part A base premium is $499 per month, an increase of $28 from 2021. Individuals who have 30 quarters pays $274 per month, an increase of $15 from 2021.
Medicare Part B includes the following changes:
- 2022 Part B base premium is $170.10 per month, an increase of $21.60 per month from 2021.
- Part B deductible for 2022 is $233, an increase of $30 from 2021.
Per CMS, the reasons for these increases include the following:
- “Rising prices and utilization across the health care system that drive higher premiums year-over-year alongside anticipated increases in the intensity of care provided.”
- Congressional action to significantly lower the increase in the 2021 Medicare Part B premium, 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 2022.
- The need to create additional contingency reserves due to the uncertainty regarding the potential use of the Alzheimer’s drug, Aduhelm, by Medicare beneficiaries. Since July 2021, CMS has initiated a National Coverage Determination analysis process to determine whether and how Medicare will cover Aduhelm and other similar medications used to treat Alzheimer’s disease. Treatment using Aduhelm is costly, and if covered, would result in “significantly higher expenditures for the Medicare program.”
Medical costs and trends in healthcare are on the rise. The need to treat disease, illness and even routine care continues to increase annually. While these increases are significant, the hope will be that the increase for 2022 will provide a hedge against future costs of the Medicare program and, as a result, hopefully lower Medicare costs in the future.