The Centers for Medicare and Medicaid Services (CMS) have announced the 2022 increases in premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs. Each year, the rates are adjusted according to the Social Security Act. The historic Cost-of-Living Adjustment announced by the Social Security Administration last month is the basis for this year’s increase.

In 2022, the standard monthly premium for Part B beneficiaries will be $170.10. This is a $21.60 increase from the $148.50 monthly premium in 2021 – a 14.5 percent increase overall. Medicare Part B, known as “medical insurance,” typically covers doctor visits, outpatient services, preventative care, durable medical equipment (DME), and medically necessary services. For most Part A beneficiaries, coverage is free and that remains the same in 2022. Medicare Part A, known as “hospital insurance,” generally covers inpatient hospital care, skilled nursing facility care, hospice care, home health care, and nursing home care.

Earlier this year, CMS announced information for the Medicare Part C (“Medicare Advantage”) and Part D (“Medicare drug coverage”) costs. While CMS is not responsible for establishing monthly costs for Advantage and prescription drug plans, information is released each year to provide guidance and support for beneficiaries as they make determinations about their medical coverage for the upcoming year. CMS estimates that the average cost of a Medicare Advantage plan will be down slightly from $21.22 in 2021, averaging about $19 per month. On the other hand, the average cost of a Part D plan is expected to increase in 2022 from $31.47 per month to $33 per month.

Medicare’s Annual Election Period (AEP) is running now through December 7th. The licensed insurance agents at Aevo Insurance Services, a division of Brown & Brown Absence Services Group, formerly The Advocator Group, are available to offer Medicare guidance and support during this critical decision-making period. Contact Aevo today to speak with an agent regarding your individual coverage needs.