Medicare Part B is one of the most important parts of the Medicare program. It covers medically necessary services like doctor visits, outpatient care, and preventive services. In this blog post, we will discuss the cost of Medicare Part B for 2022 and how it works. We will also provide a table that shows the costs for each age group.
What Is The Cost for 2022?
In 2022, the standard monthly premium for Part B is $170.10, which is either deducted from your Social Security benefits or paid out of pocket. Part B coverage makes sense for most individuals due to its cheap monthly premiums, but you should evaluate your current health insurance coverage before enrolling in the federal plan.
What Does Part B Cover?
Medicare Part B is a portion of Original Medicare, which is the federal health insurance program for individuals who are 65 and older or who have a qualified disability.
Part B is known as the medical insurance portion of Medicare, meaning it provides coverage for preventive and other medical services. Medicare Part A provides coverage relating to hospital expenses.
Some examples of Medicare Part B expenses include:
- Ambulance services
- Lab tests
- Doctor visits
- Some medical equipment
- Therapy
- Screenings
- Vaccinations
- Transplants
Who is Eligible?
Medicare Part B is available to U.S. citizens and legal residents who fall under one of the following criteria:
- Over the age of 65
- Under the age of 65 with a disability
- Have end-stage renal disease
- Have Lou Gehrig’s disease (ALS)
If you contributed to Social Security while working and are getting benefits for at least four months before turning 65, you will be enrolled in Medicare Part A automatically. You’ll also be enrolled in Part B, but you can choose to decline it since you must pay a separate monthly fee for Part B insurance.
If you do not receive benefits from Social Security, then you’ll need to manually enroll in Medicare Part B. Enrollment begins three months before your 65th birthday and ends three months after the month you turn 65, for a total of seven months.
During this initial enrollment period, you can sign up for any part of Original Medicare. When you enroll before the month you turn 65, coverage begins on the first day of your birth month. If you sign up the month you turn 65 or in the final three months of your enrollment period, your Medicare policy will be effective on the first day of the following month.
The Rate Change
Over the past decade, Medicare Part B rates have risen by an average of 6% annually. A key reason for rate hikes in recent years is the cost of specialty drugs covered by Part B. Because Medicare isn’t authorized to negotiate drug prices, Medicare recipients shoulder those costs in the form of higher monthly premiums.
In 2022, the standard Medicare Part B premium jumped by $21.60 — the largest dollar increase in the program’s history. The rate went up partly to pay for an expensive new Alzheimer’s drug called Aduhelm, which the Food and Drug Administration (FDA) approved at a very high cost. But in a rare move, the drug maker greatly reduced the price of Aduhelm — after Part B premiums were established for 2022.
Due to the decreased drug price, the Centers for Medicare & Medicaid Services (CMS) is looking into lowering the 2022 Part B rate. Reducing the rate would be unprecedented and would provide relief to Medicare recipients this year, but long-term solutions are needed. One option being discussed by Congress is the Elijah E. Cummings Lower Drug Costs Now Act, which would cap drug prices and empower Medicare to negotiate costs.
The Deductible for 2022
Medicare Part B comes with an annual deductible amount that must be met before coinsurance or copay benefits kick in. In 2022, the deductible amount is $233, meaning that after you pay out of pocket for expenses that total $233, cost-sharing begins.
Typically, after you reach the deductible for the year, you are required to pay 20% of Medicare Part B approved expenses out of pocket.
If you feel like you need help with affording Part B. Please give us a call. We know of plans that can cover a portion of your Part B premium. Thanks for reading.