Medicare costs may change year to year. Here’s what to expect for 2022—what’s changing and how to prepare.
How Medicare Costs Work (What to Expect)
Let’s get an idea of Medicare costs before looking at how they’re changing. First, premiums. This is the main cost that people consider when it comes to Medicare because it is a monthly, consistent fee. The premiums for Medicare Advantage (Part C) and Part D will vary plan-to-plan, but premiums for Original Medicare (Part A and Part B) are standardized.
Next is the deductible. You’ll pay this once a year if you use the plan’s coverage. So, if you go the year without going to the hospital, you won’t pay the deductible. Once again, Parts C and D will have different deductibles based on the plan. It is standardized for Original Medicare.
Original Medicare Costs
Now that you understand what costs are up for change in 2022, let’s take a look. First, there’s the Part A premium. You’ll pay up to $499 each month in 2022. However, very few people actually pay a Part A premium. If you or your spouse have worked for at least 10 years paying Medicare taxes, you won’t have to worry about it. If you do have to pay the premium, make sure you enroll right when you turn 65. If you delay enrollment, you may be faced with late enrollment penalties.
The same late enrollment process applies to Part B. So, avoid enrolling late if you can. However, if you are still working when you become eligible, you can delay enrollment until your employer coverage ends without facing late fees.
But, Part B premiums are required for everyone. The standard Part B premium for 2022 is $170.10. If you reported more than $91,000 individually or $182,000 jointly on your 2020 tax return, you’ll pay an increased Part B premium of $238.10. As your reported income increases, your premium goes up.
If you paid an increased premium last year, you may actually pay less this year. The income brackets have increased, so even if you make the same amount, you may fall into a less expensive premium bracket.
Finally, there are the deductibles. For Part A, the deductible is $1,556 per benefit period. For Part B, it’s $233 per year.
Helping You Keep Affordable Medicare Coverage
Secure Insurance Group works hard to make sure you get the coverage you need, and we’ll make sure it works with your budget. To learn more about Medicare, call us today at 1-877-871-7328.
