MediGap Advisors Health & Wealth Newsletter
December 2021
Vol. 16, Issue 12

Your Premiums and Deductibles Are About to Go Up. Here’s How to Mitigate Those Costs [Medicare 2022]

Every year, Medicare premiums and deductibles are increased by a small amount. This is no different from any other type of insurance, and the increase is usually less than $10.

But due to skyrocketing hospital and provider charges, Medicare prices are going further up in 2022 than any other year in recent memory. For example, the Part B standard premium alone is going up by a record 14.5%.

But don’t panic: There are a few ways to mitigate this cost increase so that your expenses don’t jump up any more than they need to. Here’s a look at the upcoming price bumps, as well as a few suggestions on how to balance them out over the course of the year.

What Are the New Medicare Premiums for 2022?

Medicare Part A Premium:

A majority of Medicare enrollees do not pay a Part A premium, because they paid Social Security taxes for at least 40 three-month quarters (or about 10 years). Those who paid between 30 and 39 quarters can buy into Part A for $274 per month, up from $259 in 2021.

Those who paid fewer than 30 quarters have to buy into Part A at the full premium price, which is $499, up from $417 in 2021.

Medicare Part B Premium:

The standard Medicare Part B premium is increasing to $170.10 in 2022. This is $21.60 higher than the standard 2021 premium of $148.50.

Individuals who earned more than $91,000 and joint filers who earned more than $182,000 are subject to an additional surcharge. (These surcharges vary depending on your specific income, and use the 2020 tax year as a basis.)

Are Deductibles Going Up as Well?

  • The Medicare Part A deductible is increasing from $1,484 to $1,556, an increase of $28.
  • The Part B deductible is increasing from $203 to $233, an increase of $30.

What’s the Big Deal? Why Are Prices Going Up So Fast?

According to the people at Medicare, the higher cost increases for 2022 are due to medical professionals charging more for their services. In other words, hospitals and doctors are simply charging more, and now those costs are coming back around to you.

How Can I Pay Less in Medicare Premiums?

Here are a few potential ways to bring your Medicare premiums back down:

  1. Reassess your Medicare Surcharges. If you are paying a Part B or Part D premium surcharge because of your income level, a life-changing event over the last two years could qualify you for a re-assessment. If you retired, got divorced, or experienced the death of a spouse, you could be moved to a lower income level.
  2. Use Medicare Advantage for Part B Premium Reduction. Some Medicare Advantage plans include a Part B premium reduction, where your plan pays a portion and you pay the rest.
  3. See if You Qualify for ‘Extra Help’. Even if you make too much to qualify for Medicaid, you might be able to qualify for a subsidy to bring down your Part D premiums and out-of-pocket costs. This is called the Extra Help Subsidy.
  4. Use HSA Funds to Pay Your Premium. If you still have funds in an HSA, you can use them to pay your Part B, Part D, and Medicare Advantage premiums. As HSA-qualified expenses, this means that you’re paying your premiums with pre-tax money. (Medigap premiums are not HSA-qualified).
  5. Consider the Medicare MSA Plan with a $0 Premium. The MSA Plan is a form of Medicare Advantage with a $0 monthly premium. While you still have to pay your Part B premium, you’re still getting better coverage than Original Medicare, as well as a tax-advantaged Medical Savings Account.

Visit the MediGap Advisors Blog for More Details on the 2022 Medicare Cost Increase

To see a more detailed breakdown of the 2022 cost increases, click over to this month’s MediGap Advisors Blog. There you’ll find a complete list of Part A and Part D premium costs by income level.

If you need to switch Medicare plans to get something more affordable, your Personal Benefits Manager can assist. If you’re already enrolled in Medicare, then the only time to switch is during Annual Enrollment, which ends every year on December 7th.

To your health and wealth,

Wiley P. Long, III
President – MediGap Advisors

 

 

 

 

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