It can be challenging to navigate a complicated Medicare system with fees that fluctuate year to year. Understanding these shifts and expecting changes in 2022 will help you be prepared for them.

Here are some brief details of what you can expect from the Medicare costs in 2022, along with a few tips on reducing your Part D costs.

Medicare Part A Cost in 2022

Medicare Part A includes inpatient hospitals, skilled nursing facilities, and some home healthcare services and is accessible to anybody who has worked for at least 40 quarters in a Medicare-covered job. Yet, according to the Centers for Medicare and Medicaid Services (CMS), about 99 percent of Medicare enrollees do not pay a Medicare Part A payment.

If you have paid Medicare taxes for fewer than 30 quarters, you have to pay for Part A coverage. Your premium will be $499 in 2022, up to $28 from 2021. If you have paid Medicare taxes for 30 to 39 quarters, your new monthly premium will be $274 per month in 2022, up to $28 from 2021.

Medicare Part B Cost in 2022

When it comes to outpatient treatment or durable medical equipment, Medicare Part B works with Part A to guarantee that you are covered.

Physician services, outpatient hospital services, home health services, durable medical equipment, and other medical and health services not covered by Medicare Part A are all covered under Medicare Part B.

By 2022, the regular monthly premium for Medicare Part B subscribers will be $170.10, up from $148.50 in 2021. 

Medicare Part C Cost in 2022

Because Medicare Advantage (Part C) plans are acquired via private health insurance companies, the rate changes for 2022 will be different. Check with your Part C supplier for the most up-to-date premium prices for 2022.

The average monthly premium for the Part C plan is expected to drop from $21.22 in 2021 to $19 in 2022, according to the Centers for Medicare & Medicaid Services (CMS).

How Much Will Medicare Part D Cost in 2022?

Medicare Part D costs depend on the plan you select and your household income. The average monthly premium of Medicare Part D plans in 2022 is $33. In addition, the deductible amount varies by plan, but the maximum deductible can be around $480.

On top of the plan’s cost, those with earnings exceeding $91,000 will have to pay an extra premium. Only around 8% of registrants pay the Medicare adjustment payment, withdrawn automatically from those who qualify for Social Security income.

Refer to this guide if you want to learn more about eligibility criteria and enrollment for Medicare Part D.

Medicare Part D: Eligibility, Enrollment, & Costs to Know

Part D Donut Hole

A coverage gap exists in Medicare prescription drug plans, a temporary limit on what the plan will cover. The “donut hole” is used to describe the coverage gap. It kicks in after you and your insurance have spent a specific amount on pharmaceuticals in total expenditures. Afterward, you have to pay a portion of your medications out of pocket once that amount has been exceeded.

However, most plans contain an out-of-pocket restriction on how much you have to pay out of pocket in a particular year, known as the out-of-pocket threshold. Once you’ve reached that amount, your coverage resumes. As a result, the term “donut hole” was coined.

When you reach your out-of-pocket maximum for covered pharmaceuticals ($7,050 in 2022), you enter the catastrophic coverage phase, where you only pay a minimal coinsurance or copayment for covered prescriptions for the remainder of the year.

This coverage gap will begin in 2022 when you and your drug plan have spent $4,430 on covered medications. Whether you buy your prescriptions online or at the pharmacy, you’ll pay no more than 25% of the drug cost (brand-name and generic) after you achieve this level.

How Much Does Medigap Cost in 2022?

Medigap (Medicare supplement insurance) is a collection of policies sold by private insurance companies that effectively pay expenses not covered by your regular Medicare coverage. As a result, Medigap policies will vary in price according to the provider and state.

It’s worth noting that Medigap plans C and F are not accessible to anyone who became Medicare eligible on or after January 1, 2020.

The cost of a Medigap plan in 2022 will vary significantly depending on your age, needs, region, and insurance provider. Individual premiums are determined by each firm depending on these considerations. That’s why, when choosing a Medigap provider, it’s critical to evaluate plans and rates.

How to Reduce Your Medicare Costs

• When feasible, switch to a generic medicine to lower your prescription drug prices.
• Apply for Extra Help, a prescription medication coverage help program. You can learn more about it here.
• The Patient Advocate Foundation can help you with copay reduction or financial aid.
• Find out if you qualify for Medicaid, a federal-state program that assists in paying medical expenses.
• Apply for Medicare Savings Programs such as the Qualified Medicare Beneficiary (QMB) or Specified Low-Income Medicare Beneficiary (SLMB). These are state-run discount schemes for Medicare beneficiaries who earn less than a particular amount.

Conclusion

In 2022, Medicare prices have changed. And the plans you select determine the amount you pay. In addition, many discount and assistance programs are available to help you save money on Medicare. However, these programs are dependent on many criteria, including where you reside, your income, whether you have a disability, and which insurance carrier you pick.

Simpler Horizons has helped many individuals find the right Medicare plan. However, if you are also wondering what plan is suitable for you per your medical needs, consult our licensed agents specializing in Medicare.