Every year, the cost of Medicare Part A and B increases by a small amount. These costs come as increases to premiums, deductibles, and coinsurance payments. In 2022, Medicare costs are increasing more than usual. This short guide explains the 2022 Medicare premium increases, deductible increases, and more for Part A and B.
Medicare 2022 Changes: Key Takeaways
- Deductibles, premiums, and coinsurance payments for Medicare Part A and Medicare Part B will be increasing in 2022
- Medicare Part D’s income-related adjustments are also going up
- Insurance experts and Medicare representatives blame the increases on the rising costs of healthcare services
Medicare Part A Costs [2021 vs. 2022]
Part A covers inpatient hospital care, as well as any skilled nursing, hospice, or home healthcare required as the result of a hospital stay.
The vast majority of Medicare enrollees do not have to pay a premium for Part A coverage. But if you didn’t pay payroll tax for a sufficient number of quarters over your life, then you must buy into Part A with a monthly premium.
For more on Medicare “Quarters” or “Work Credits”, see the FAQ at the bottom of this page.
Table: Medicare Part A Increase for 2022
| 2021 | 2022 | Increase | |
|---|---|---|---|
| Part A Premium (30 + Quarters) | $259 | $274 | +$15 |
| Part A Premium (< 30 Quarters) | $471 | $499 | +$28 |
| Part A Deductible | $1,484 | $1,556 | +$72 |
| Hospital Coinsurance for days 61-90 | $371 | $389 | +$18 |
| Daily Coinsurance for Lifetime Reserve Days | $742 | $778 | +$36 |
| Skilled Nursing Facility Coinsurance | $185.50 | $194.50 | +$9 |
Medicare Part B Costs [2021 vs. 2022]
Part B covers outpatient hospital services, physician services, durable medical equipment, and a few other things not covered by Part A.
Most Medicare enrollees pay the standard Part B premium, which will increase to $170.10 in 2022. However, individuals or couples in higher income brackets might have to pay more.
Here’s a look at how Medicare Part B costs are increasing:
Table: Medicare Part B Premium Increase for 2022
| Individual Tax Return | Joint Tax Return | Part B Premium 2021 | Part B Premium 2022 | Increase |
|---|---|---|---|---|
| $0 – $91,000 | $0 – 182,000 | $148.50 | $170.10 | +$21.60 |
| $91,001 – $114,000 | $182,001 – $228,000 | $207.90 | $238.10 | +$30.20 |
| $114,001 – $142,000 | $228,001 – $284,000 | $297.00 | $340.20 | +$43.20 |
| $142,001 – $170,000 | $284,001 – $340,000 | $386.10 | $442.30 | +$56.20 |
| $170,001 – $499,999 | $340,001 – $749,999 | $475.20 | $544.30 | +$69.10 |
| $500,000 or More | $750,000 or More | $504.90 | $578.30 | +$73.40 |
Table: Medicare Part B Deductible Increase for 2022
Note: The Medicare Part B deductible is standard for all enrollees, regardless of annual income.
| Part B Deductible 2021 | Part B Deductible 2022 | Increase |
|---|---|---|
| $203 | $233 | +$30 |
Medicare Part D Increase [2021 vs. 2022]
Part D is an optional add-on plan that covers prescription medications. The monthly cost of Part D plans depends on the specific plan that you choose. However, a small percentage of high-income individuals may be subject to an additional surcharge, known as the monthly adjustment.
Remember: If you are required to pay a Part D monthly adjustment, that amount is in addition to your plan’s premium.
| Individual Tax Return | Joint Tax Return | Monthly Adjustment 2021 | Monthly Adjustment 2022 | Increase |
|---|---|---|---|---|
| $0 – $91,000 | $0 – 182,000 | $0 | $0 | N/A |
| $91,001 – $114,000 | $182,001 – $228,000 | $12.30 | $12.40 | +$0.10 |
| $114,001 – $142,000 | $228,001 – $284,000 | $31.80 | $32.10 | +$0.30 |
| $142,001 – $170,000 | $284,001 – $340,000 | $51.20 | $51.70 | +$0.50 |
| $170,001 – $499,999 | $340,001 – $749,999 | $70.70 | $71.30 | +$0.60 |
| $500,000 or More | $750,000 or More | $77.10 | $77.90 | +$0.80 |
Medicare Changes 2022 – Frequently Asked Questions [FAQ]
Q: What is the 2022 Part A Premium?
A: The Part A premium for 2022 is $274 for individuals with at least 30 Medicare work credits. People with fewer than 30 Medicare work credits must pay the full premium of $499.
If you have 40 or more Medicare work credits, you do not have to pay a Part A premium.
Q: What is the 2022 Part B Premium?
A: The standard Part B premium in 2022 is $170.10. However, if you earned $91,001 as an individual or $182,001 as a joint filer on your 2020 return, your premium will include an additional surcharge. (See the Part B increase section above for more detailed information).
Q: What Are Medicare Work Credits / Quarters?
A: A Medicare work credit is defined as a 3-month period of time in which Social Security and Medicare taxes are paid. Work credits are also commonly referred to as work quarters, Medicare credits, or Social Security credits.
In order to qualify for a no-premium Medicare Part A plan, you need a minimum of 40 credits. For most people this is about 10 years of working.
Q: Why Did Medicare Costs Go Up?
A: Medicare costs are going up more in 2022 than in previous years. Medicare representatives blame the sharper increase on the rising costs charged by medical providers.
Q: How do I Switch to $0 Premium Medicare?
A: If you’re looking for a Medicare plan with a lower premium, or even a $0 premium, you can make the switch to Medicare Advantage. These are privately-sponsored insurance plans that include everything covered by Medicare, and usually a lot more.
Your Personal Benefits Manager can help you find that plan that you need. Or, get started by reading up on the Medicare MSA Plan, the only Medicare Advantage option that always comes with a $0 monthly premium.
Note: The only time to switch to Medicare Advantage is either right when you turn 65 or during the Annual Enrollment Period from November 1st to December 7th every year.
Rising Medicare Costs Means You Could Be Paying Too Much
The only way to make sure that you’re not overpaying for Medicare is to check in with your plan every year. This means paying attention to not only the annual rate increases but also being mindful of your personal financial and health needs and making sure that you’re enrolled in the right option for you.
If you’re ready to make changes, or you just need a little guidance, your Personal Benefits Manager can help. Click here to schedule a free consultation.
Wiley Long is founder and president of Medigap Advisors, and is passionate about helping people navigate the confusing waters of Medicare. He is the author of The Medicare Playbook: Designing Your Successful Health Coverage Strategy, a clear and simple explanation so you can make the most of your Medicare coverage.