The Centers for Medicare & Medicaid services has announced the new Medicare cost sharing amounts for 2022.
With inflation rising, the percentage increases are higher than in past years. We discuss the numbers below and how they affect your premiums, deductibles, coinsurance and out-of-pocket exposure.
These changes affect all insurance plans – both new and old. All Medicare plans must abide by any new cost sharing rules no matter when they were purchased.
Medicare Premiums, Deductibles & Coinsurance 2000-2022
|Medicare Feature||2020 Amount||2021 Amount||2022 Amount||2023 Amount||Change From 2022|
|Medicare Part B Premiums (For Most)||$144.60||$148.50||$170.10||$164.90||-$5.20|
|Part A Deductible (Impatient Hospital)||$1,408||$1,484||$1,556||$1,600||+44|
|Part B Deductible (Physician's Services)||$198||$203||$233||$226||-$7|
|Hospital Coinsurance Days 61-90||$352||$371||$389||$400||+$11|
|Hospital Coinsurance Days 91-150||$704||$742||$778||$800||+$22|
|Skilled Nursing Facility Coinsurance||$176||$185.50||$194.50||$200||+$5.50|
|High Deductible Plans F, G & J||$2,340||$2,370||$2,490||?||?|
Medicare Part B Premiums & IRMAA Surcharges
Medicare Part B premiums increase each year and 2022 is no different. By rule, those who fall under the “hold-harmless” provision must have their Part B premiums offset by increases in Social Security payments.
Most others will see their premiums increase to $170.10 per month. Higher earners will also experience increases based on their income. Those who are new to Medicare in 2022 will pay $170.10 per month – a $21.60 increase from 2021. It was $3.90 increase in 2020 so that’s a significant amount.
The Income Related Monthly Adjustment Amount (IRMAA) requires individuals making more than $91,000 – and couples filing jointly making over $182,000 – to pay more for Medicare Part B coverage.
|Individual Filers||Joint Filers||Married - File Separately||Your 2022 Monthly Premiums|
|AGI Less Than Or Equal To $91,000||AGI Less Than Or Equal To $182,000||AGI Less Than Or Equal To $91,000||$170.10|
|AGI Greater Than $91,000 And Less Than Or Equal To $114,000||AGI Greater Than $182,000 And Less Than or Equal To $228,000||N/A||$238.10|
|AGI Greater Than $114,000 And Less Than Or Equal To $142,000||AGI Greater Than $228,000 And Less Than or Equal To $284,000||N/A||$340.20|
|AGI Greater Than $142,000 And Less Than Or Equal To $170,000||AGI Greater Than $284,000 And Less Than or Equal To $340,000||N/A||$442.30|
|AGI Greater Than $170,000 And Less Than Or Equal To $500,000||AGI Greater Than $340,000 And Less Than or Equal To $750,000||AGI Greater Than $91,000 And Less Than or Equal To $409,000||$544.30|
|AGI Greater Than $500,000||AGI Greater Than $750,000||AGI Greater Than $409,000||$578.30|
IRMAA premiums are determined by your income from 2 years ago. There are five tiers to the IRMAA payment schedule as seen above. What you made in 2020 determines your 2022 Part B premiums. There is also an IRMAA surcharge on Medicare Part D drug premiums as well.
Medicare Part A & Part B Deductible Amounts
The Part B deductible is important for a lot of consumers. The Medicare Part B deductible for 2022 is $233 – a $30 increase from 2021. This amount affects owners of a Medicare supplement that does not cover the Part B deductible.
Medigap Plans G & N are two popular policies that do not cover the Part B Deductible. We see a lot of enrollment in these two as their rates tend to be more stable. Plans C & F do cover the Part B deductible, but are only available for purchase if your Medicare Part B began before January 1, 2020.
The Part A deductible (Inpatient Hospital Care) is increasing to $1,556 – an increase of $72. Most Medicare supplements cover the Part A deductible. This increase is similar to the $76 it was last year. The most popular policies like Plans F, G and N cover this gap.
On reason Medicare Supplements increase in price each year is they have to cover costs like the Part A deductible. Another reason is the higher utilization of health care services due to the pandemic.
What is the 2022 High Deductible Plan F, G & J Amount?
Some consumers prefer High Deductible Medicare supplement plans due to their very low premiums. Consumers also like the known out of pocket exposure. The deductible for all High Deductible policies will increase to $2,490 in 2022. That’s a $120 increase from 2021 which is much larger than the $30-$40 we’ve seen in past years.
Plans F, G and J are the only policies with a high deductible option. Plan J hasn’t been available for many years, but some still own it. Plan F is only be available to those who were Medicare eligible before 2020.
The only plan available for those who are new to Medicare in 2020 and beyond is High Deductible Plan G. In many states, HD Plan G will offer the lowest monthly premiums of any Medicare supplement for sale.
Medicare Supplement Plans K and L Changes
Plans K and L were introduced in 2010 as part of the Medicare Modernization Act. We don’t see a lot of interest in these two policies. They have larger out of pocket exposure, but higher premiums than similar (or even more comprehensive) Supplements.
In terms of cost-sharing, they somewhat resemble Medicare Advantage coverage. Plans K and L do not have network restrictions, however. You can see any doctor or hospital accepting Supplements – which most do.
The increases with these two plans is inline with what we’ve seen in prior years. The out of pocket will be $6,220 for Plan K and $3,110 for Plan L. When you compare benefits and premiums with these two, it’s wise to also consider Plan N or one of the High Deductible policies. There may be more value in the latter.
Contact Us For Assistance
As you can see above, there are some significant increases in Medicare premiums and cost sharing. Those who are on a fixed income may need to reevaluate their choices for supplemental insurance. It may be necessary to look at lower cost Advantage plans or Medigap policies with higher out of pocket exposure.
We are a full-service, independent insurance agency offers Medicare insurance all across the country. We license direct with all of carriers. We are a great resource for education, comparisons and direct enrollment.
We offer Medicare supplements, Medicare Advantage and Part D prescription drug coverage. Contact us today to compare your most affordable options.