Medicare is a government-run healthcare program that provides health insurance to Americans who are 65 or older, disabled, or have end-stage renal disease. In this blog post, we will take a look at how much Medicare premiums 2022 will cost. We will also discuss the different parts of Medicare and how they work. Stay tuned for more information on Medicare!
What is the Cost?
The Medicare premiums 2022 for you will depend on what parts and plans you select for your coverage. Even though costs vary, below is an overview of what many people typically pay for each part of Medicare.
Medicare plan typical monthly cost:
- Part A (hospital) $0
- Part B (medical) $170.10
- Part C (bundle) $33
- Part D (prescriptions) $42
- Medicare Supplement $163
Medicare Part A
According to the Medicare program, 99% of enrollees get Medicare Part A for free. Those who do not qualify will pay between $274 and $499 per month in 2022, with the exact amount based on how much they or their spouse have paid in Medicare taxes.
Medicare Part A costs nothing for most enrollees due to their previous participation in the workforce. If you have worked for more than 10 years or 40 quarters, then you are eligible to pay $0 for Medicare Part A. This is because, during your working years, you contributed to Social Security and Medicare payroll taxes.
A large cost for Medicare Part A is the deductible, which is the amount you have to pay for medical care out of pocket before the plan’s benefits begin.
For 2022, the Medicare Part A deductible is $1,556. That’s a $72 increase from 2021. However, this cost is usually covered if you enroll in a Medigap policy or Medicare Advantage.
Costs of Part B
For most people, the cost of Medicare Part B for 2022 is $170.10 per month. This rate is adjusted based on income, and those earning more than $91,000 will pay higher premiums.
For high-earners, the cost of Medicare Premiums 2022 Part B is based on your adjusted gross income (AGI) from your previous year’s taxes. Only about 7% of enrollees will pay these higher rates, and below you can find an exact breakdown of the different income thresholds for Medicare Part B premiums. If you file joint taxes, then you can double these income levels to figure out what your monthly Part B premium would be. These figures are updated annually by the Social Security Administration (SSA).
Part C Costs
The cost of Medicare Part C, also called Medicare Advantage, will vary depending on the health insurance plan you select. For 2022, the average cost of available plans is $33 per month.
Part C is a pure private health insurance product, meaning that costs and coverage are not standardized across companies. Every policy has different levels of coinsurance, premiums, and deductibles. Therefore, you should shop around on the Medicare.gov website to find the best Medicare Advantage policy.
Typically, enrollees in Medicare Advantage can find plans as cheap as $0 per month as well as expensive plans costing several hundred dollars per month. The price range is due to differences in coverage. In addition to the premiums, potential policyholders for Medicare Advantage policies should take note of the deductibles for these plans, as they can be higher than the deductibles for other parts of Medicare.
Part D Costs
Costs for Medicare Part D will vary based on the plan you choose and your household income.
For 2022, available Medicare Part D plans cost an average of $42 per month. The deductible amount also varies by plan with the average drug deductible being about $344.
Those with incomes over $91,000 will also pay an additional fee on top of the plan’s cost. Only about 8% of enrollees pay this Medicare adjustment amount, which is automatically deducted from the Social Security benefits of those who qualify.
Average Cost of Supplement
For 2022, a Medicare Supplement plan (also called a Medigap plan) costs an average of $163 per month. However, costs will depend on two factors: the policy you choose and the pricing structure in your state.
Firstly, different plan letters have different prices since each policy provides a different level of coverage. For example, Medigap Plan G, a more comprehensive plan, costs more than Plan K, a cheaper plan with less coverage. The average monthly premiums of each Medigap plan for 2022 will vary.
If you have any or need a quote. Please give us a call. We will help explain changes in Medicare Premiums 2022.