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Medicare Part B Premiums Increase over 14% in 2022

Category: Health and Wellness Issues

November 14, 2021 — Gasoline and groceries aren’t the only items seeing hefty prices increases coming out of the pandemic. Medicare just announced that Part B premiums will increase 14.5% next year, resulting in the heftiest dollar increase ever, $21.60/month for the majority of people receiving the benefit. The base charge for the Part B benefit will be $170.10 per month next year, as opposed to $148.50 this year. Individuals with higher incomes will pay more, as seen in the chart below. At the top end, those making $500,000 or more will pay $578.30.

The Part B deductible will increase from $203 to $233 in 2022. Whether these increases will cause people to switch to a Medicare Advantage plan, which often have zero or very low premiums, remains to be seen.

Increased health care utilization and concerns over Alzheimer’s drug, Aduhelm

Experts believe that increased calls for medical services, including Covid, are one reason for the hefty Part B increases. Others are concerned that the Alzheimer’s drug, Aduhelm, if prescribed widely, could blow up Medicare’s budget. The price tag for the new drug is $56,000 per person per year, and could be covered under Part B.

Comments? Will the Part B increases cause you to look harder at a Medicare Advantage plan? What do you make of the decision for the government to pay for the use of this new and expensive drug? Please share your thoughts in the Comments section below.

Posted by Admin on November 14th, 2021

14 Comments »

  1. It’s disappointing that Social Security benefits go up by 5.9%, but Medicare B premiums go up by 14.5%.

    The Medicare B Premium is a fixed amount so it takes up a disproportionately higher share of benefits for recipients with lower benefits.

    For some beneficiaries with particularly low benefits (like teachers in 15 states with earnings from pensions not covered by Social Security) the increased Medicare premium will consume ALL of the cola/w increase.

    For everyone else, the 14.5% increase will mean a loss in inflation-adjusted real income.

    by Everette — November 17, 2021

  2. It’s a disgrace! If you’re receiving less than 2000/ month in SS with this increase & then the cost of a supplement plan – doesn’t leave much, and of course you pay income tax on SS
    Seniors don’t get any breaks.
    We are not all rich or have big retirement pensions ( I have no pension) or huge 402k plans or expensive homes to sell,
    Maybe if they would raise the income level for Medicare & SS tax beyond 147,000 it would be more solvent

    by Denise — November 17, 2021

  3. This pandemic has exposed the ugly truth that senior citizens are not valued in this country. It really is a disgrace that they allowed this disproportionate increase in Part B, and all the supplements! Ironically, with all the talk of tax payer assistance for day care regardless of financial need, it is single senior women who have the highest rate of poverty because we stayed home to raise our own children and were given a zero in the SS look back calculation for every year we were out of the paid workforce raising our children. We are also taxed on our meager SS payments and those thresholds have not been changes since 1983! The sad fact is that senior citizens really do not have anyone advocating for us. The AARP is aligned with one political party and there is no real advocacy. We are a big group with no voice. The last 2 years have been hellish for seniors, and I see no change or concern at all coming from Washington. We have good reason to worry about the next few years.

    by Maimi — November 19, 2021

  4. Medicare has been ordered to reassess the premium hike for 2022.
    https://www.bostonherald.com/2022/01/10/medicare-ordered-to-reassess-premium-hike-for-alzheimers-drug/

    Admin Comment: One person complained about this link from the BostonHerald. Reuters has the same story.
    https://www.reuters.com/business/healthcare-pharmaceuticals/medicare-asked-reassess-2022-premium-hikes-after-aduhelm-price-cut-2022-01-10/

    by Mike — January 12, 2022

  5. Good! The Medicare premium increase is ridiculous and for a drug that many seniors will not or may not need! Also, the drug is not thoroughly vetted and is not being prescribed due to the price anyway–just awful. Many of us could use the extra money in our checks. Hopefully, we will see the increase reduced or eliminatred. Seniors need to bombard their representatives here in Washington DC with letters and phone calls. Let them know how you feel. Do not just assume it is a foregone conclusion.

    by Jennifer — January 13, 2022

  6. It’s appropriate that the fairly sizable Medicare premium increase for this year is being reviewed. Since the stated reason for the increase was that Medicare would cover the cost of the expensive Alzheimer’s drug – and now the manufacturer has reduced that cost by half – then that should be factored in to a possible reduction of the premium going forward. It would be helpful for people to contact their Congress members and Senators to encourage them to push for this reduction. Congressional pressure can have a significant effect.

    by Clyde — January 13, 2022

  7. When I clicked on the Boston Herald link, I was able to read the story and was not asked to subscribe.

    by Tess — January 13, 2022

  8. Admin. My post of January 12 did not include the link to the Rueters story, I only put in the link to the Boston Herald. Are my posts being modified ?

    Admin comment: We had a complaint about the Boston Herald link, so we added the Reuters link to the same story. Not that it is a bad thing that publishers put things behind paywalls, everyone wants to get paid for their work. Topretirements has chosen to be a free site, and we are fortunate to have advertisers who allow us to continue to serve.

    by Mike — January 13, 2022

  9. To add insult to injury, the cost of many commonly prescribed drugs covered by Part D have skyrocketed. This week I went to pick up a prescription that I have been on for 4 years. It is a commonly prescribed generic drug for BP that many seniors are on. The copay had been 3 dollars a month, now 120:dollars. I thought there had been some mistake. I called the Part D insurer and they told me that drugs that had been manufactured in China now have to be manufactured in other countries and the cost to many drugs has increased substantially. Although I am relieved to hear that my prescriptions won’t come out of China anymore, these cost increases are just not sustainable for seniors. Seems the increase in SS was not nearly enough to cover the true cost of inflation.

    by Maimi — January 14, 2022

  10. To Maimi and Others
    That’s why it’s so important to review your current prescription plans each year. I found one that we’re happier with for a lower monthly cost!

    by Staci — January 15, 2022

  11. Thanks to the Administrator for his comments about changes to my recent posts. The Boston Herald link was from a newsletter I receive, it wasn’t behind a paywall for me, if it had been I wouldn’t have used it.

    by Mike — January 15, 2022

  12. Yes, I do review the Part D formularies each year, but had not read the fine print that the prices can (and did) change at any time throughout the year without notice. The increase in drug prices is across all plans.

    by Maimi — January 16, 2022

  13. Medicare announced there will be no reductions in 2022 premiums but will incorporate saving from changes in cost of Aduhelm and lower than expected spending in 2022 into the 2023 premiums. Medicare expects the premium to be lower for 2023 and will determine the amount in the fall.
    https://www.cms.gov/newsroom/press-releases/cms-releases-analysis-2022-medicare-part-b-premium-reexamination

    by Mike — June 1, 2022

  14. Medicare announced 2023 premiums and copays “The standard monthly premium for Medicare Part B enrollees will be $164.90 for 2023, a decrease of $5.20 from $170.10 in 2022. The annual deductible for all Medicare Part B beneficiaries is $226 in 2023, a decrease of $7 from the annual deductible of $233 in 2022.”

    Full statement here: https://www.cms.gov/newsroom/fact-sheets/2023-medicare-parts-b-premiums-and-deductibles-2023-medicare-part-d-income-related-monthly?link_id=3&can_id=ab2490a3803606c27c78f56536736097&source=email-junk-fees-medicare-premiums-2&email_referrer=email_1681296&email_subject=junk-fees-medicare-premiums

    by Mike — September 27, 2022

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