Medicare premiums and costs have been something we are all used to dealing with. We know that it gets more expensive yearly and becomes more complex. But what can you do when it comes to Medicare? As a Medicare beneficiary or soon-to-be beneficiary, it is super important to understand the changes in the program. This is true, especially if you’re a current or future retiree and think you will be traveling outside the country at any point during your retirement. Let’s look at the new rules and figure out what it means for Medicare Premiums in 2022 below.
Medicare Premiums For 2022 – What Changed?
Medicare Part B is a voluntary federal health insurance program that pays for covered medical services. Part B covers services such as doctor visits, hospital stays, outpatient treatments, and more.
Medicare pays 80 percent of the approved amount for all services, meaning you’re responsible for paying 20 percent of your medical costs out-of-pocket.
Medicare Part B coverage is available to most people 65 or older and people under 65 with certain disabilities. You can enroll in Medicare at any time during the year, and you can also change plans at any time during the year if you choose to do so.
Everyone gets nervous when it is time for new premiums to be announced, regardless of whether it is Medicare or private insurance. Regarding Medicare, the recipients are generally on fixed incomes, making any increase particularly challenging. For 2022, the premium has increased to $170.10, a substantial increase over 2021, which was $148.50.
Medicare Part A is the standard coverage that most people on Medicare get automatically if they’re eligible. You may not be eligible for Part A if you have another type of Medicare coverage, such as a Medicare Advantage plan.
The premium for Medicare Part A depends on the person’s income and other factors. There are no deductibles or coinsurance expenses in Part A coverage.
Medicare Part A covers hospital stays, skilled nursing facility care, home health care, and hospice care. You also can receive some preventive services with no out-of-pocket cost under this plan, including annual wellness visits (with a copayment) and certain cancer screenings (with no cost sharing).
Part A & B Cost for Services
If you need long-term care services, the costs could be substantial because Medicare only pays for them temporarily — generally up to 100 days after you enter a nursing home or other facility — unless you meet certain criteria for receiving extra benefits during that time period.
If a person does not qualify for Part A, their premium, which also increased in 2022, would be $274 per month or $499 per month, depending upon their work history. Part A only provides coverage for institutional services; in 2022, the deductible increased to $1,556. If your illness requires an inpatient stay longer than 60 days, there is a daily rate of $389 for stays between 61 and 90. The daily rate for skilled nursing care days 21 to 100 is $194.50. Without going into every specific scenario, there are other limits depending upon the type of services.
Medicare Part B has a deductible of $233, and once the deductible is met, Part B starts to cover service costs. At that point, you will be responsible for 20% of approved costs and excess charges, which are rare, of up to 15%.
Even with Medicare Part A and Part B, there will be gaps in coverage for out-of-pocket maximum limitations, prescription coverage, services outside of the U.S., and routine dental, vision, and hearing services.
So how do you cover the out-of-pocket expenses from Part A and B? With Part D for prescription drugs, Medicare supplement insurance, and Part C Medicare Advantage Plans.
Part D Prescription Drug Plans
Medicare Part D is a voluntary prescription drug plan that covers medications and supplies you may need. You can choose from several different plans with different costs and benefits.
Medicare Supplement Insurance
Medicare Supplement Insurance (Medigap) is an insurance policy sold by private companies that pay some of the medical bills not covered by Original Medicare. Medicare must approve Medigap policies before they can be sold so they meet federal standards. Medigap policies are standardized by state but are not standardized nationally. You may want to consider getting quotes from several insurance companies before choosing which one to sign up with.
Part C Medicare Advantage Plans
Medicare Part C (also called Medicare Advantage) is a program that allows you to receive all of your Medicare benefits through a private company instead of directly from the government (through Original Medicare). These companies offer additional benefits like dental, vision, hearing, and traditional medical coverage. This can be helpful if you have multiple doctors or specialists who work together as part of an integrated healthcare team or if you want one-stop health coverage.