Medicare is a hot topic right now, and with the upcoming election, it’s on everyone’s mind. What will Medicare cost in 2022? How will the new healthcare laws impact seniors? In this blog post, we’ll take a look at what to expect from Medicare in the next few years. Keep reading to learn more!
Some Medicare Costs
A premium is an amount you pay each month to have coverage, whether or not you use covered services.
- Most people get premium-free Medicare Part A. You can get premium-free Part A at 65 if you or your spouse worked and paid Medicare taxes for at least 10 years.
If you have to pay for Medicare Part A, you may pay up to $499 each month in 2022.
- Most people pay a premium for Medicare Part B. The standard Part B premium amount in 2022 is $170.10.
- If your income was above a certain amount, you might have to pay a higher Part B premium. If your yearly income in 2020 was above $91,000, or yearly your joint income was above $182,000 in 2020, you may pay an additional amount called an IRMAA (income-related monthly adjustment amount.)
- Medicare Advantage plans may come with a monthly premium – as low as $0 per month for some plans. You need to continue paying your Medicare Part B premium as well as any plan premium.
- A stand-alone Part D prescription drug plan will generally have a monthly premium.
As with Medicare Part B, you might pay a higher Part D premium if your income is above a certain amount. In 2022, the IRMAA for Part D begins at $12.40 and can be higher depending on your income 2020. The IRMAA amount is added to your Part D monthly premium.
- Medicare Supplement insurance does not cover Original Medicare premiums. Each Medicare Supplement insurance plan usually comes with a monthly premium of its own.
Premiums vary among insurance companies. Only Medicare Part A and Part B have these costs set by the government.
Coinsurance With Medicare
A coinsurance is a percentage of the cost you pay when you receive a service or pick up a prescription drug, for example.
Under Medicare Part A (hospital insurance), here’s what you’ll pay as a hospital inpatient in 2022.
- $0 for days 1-60
- $389 per day for days 61-90
- $778 per day for days 91 and beyond, for each “lifetime reserve day.” You get up to 60 of these days over your lifetime.
- All costs when your lifetime reserve days are used up.
Under Medicare Part B, you generally pay a 20% coinsurance for most covered services, such as doctor services, outpatient therapy, and durable medical equipment such as wheelchairs.
Medicare Advantage plans and stand-alone Medicare Part D plans may charge coinsurance for covered services or prescriptions.
Maximum Out of Pocket With Medicare
It’s important to realize that Original Medicare, Part A, and Part B, have no out-of-pocket maximum. This means you could pay a lot of money if you find yourself hospitalized for a long time.
You can protect yourself from unlimited costs through a Medicare Advantage plan or a Medicare Supplement Insurance plan. Note that these types of plans don’t work together – you need to choose one or the other if you want this coverage.
- Medicare Advantage plans all have yearly out-of-pocket maximums that reset every calendar year. These amounts can vary among plans.
- Medicare Supplement Plans K and L have out-of-pocket maximums. For Plan K, this limit is $6,620, and for Plan L, $3,310 in 2022. Once you meet your yearly out-of-pocket limit and pay your Part B deductible, the Medicare Supplement insurance plan pays 100% of your covered services for the rest of the calendar year.
The Medicare Supplement insurance plans that don’t have out-of-pocket limits still will help protect you from Medicare copayments, coinsurance, and deductibles.
Total Monthly Cost Breakdown
Here are two example scenarios of what your monthly Medicare costs could be in a normal healthy month where you see a doctor once and fill one prescription.
Example scenario 1 with Original Medicare, Medicare Supplement insurance, and Medicare Part D. Note that everything except the Part B premium is just an example and may be different in your situation.
- Part A premium: $0
- Part B premium: $170.10
- Part D premium: $14
- Medicare Supplement premium: $75
- Doctor visit: 20% coinsurance: $0
- Prescription drug copayment: $20
Total: $279.10
Note that the Medicare Supplement insurance plan generally pays your doctor visit coinsurance, which is why it may cost you nothing.
Example scenario 2 with a Medicare Advantage prescription drug plan. Note that everything except the Part B premium is just an example and may be different in your situation.
- Medicare Advantage premium: $0
- Medicare Part B premium: $170.10
- Prescription drug copayment: $20
- Copayment to see a doctor: $20
Total: $210.10
Do You Need Help With Medicare Costs?
If you need help paying for Medicare costs, there are a few options available to you.
One option is a Medicare Savings Program. If you qualify, this program can help pay your Part A and/or Part B premiums, as well as coinsurance and deductibles. You can learn more about the Medicare Savings Program on our website or by calling us at the number below.
Another option for help with Medicare costs is a Medicaid program. If you qualify, Medicaid can help pay your Part A and/or Part B premiums, as well as coinsurance, deductibles, and copayments. You can learn more about Medicaid on our website or by calling us at the number below.
You can also contact us at the number below to speak with a licensed insurance agent who can help you understand your options and enroll in a plan.
We can help you compare Medicare Supplement insurance plans and Medicare Advantage plans to find the best coverage for your needs and budget. We can also help you enroll in a plan.
Give us a call today to get started!