Seniors are set to experience shrinking wallets for the upcoming year as Medicare premiums outpace Social Security Cost of Living increases.
Money Talks News’ recent article entitled “Traditional Medicare Premiums Will Soar in 2022” says that the rising costs include the:
- 2022 Medicare Part B standard premium: $170.10 per month, an increase of $21.60 from $148.50 in 2021. That’s compared with an increase of $3.90 per month one year earlier.
- 2022 Medicare Part B deductible: $233 per year, an increase of $30 from $203 in 2021. That’s compared with an increase of $5 one year prior.
- 2022 Medicare Part A inpatient hospital deductible: $1,556, an increase of $72 from $1,484 in 2021. That’s compared with an increase of $76 one year prior.
What this means is that Medicare costs will go up 2022 and will effectively reduce the 5.9% cost-of-living adjustment (or “COLA”) that increases retirees’ monthly Social Security benefit payments in the new year. For the average retiree, the 2022 COLA is about an extra $92 a month. These Social Security COLAs averaged 2.2% between 2000 and 2020 and annual increases in the Part B premium averaged 5.9% during the same period.
Here what Medicare Part A covers:
- Inpatient hospital services
- Skilled nursing facility services; and
- Some home health care services.
Nearly all (roughly 99%) of Medicare beneficiaries don’t pay a premium for their Part A coverage due to how long they worked and had Medicare taxes withheld from their paychecks. Part B covers the following types of care:
- Physician services
- Outpatient hospital services
- Certain home health services
- Durable medical equipment; and
- Certain other medical and health services not covered by Part A.
Part B premiums are based on income. Those with higher incomes pay higher Part B premiums — which will be anywhere from $238.10 to $578.30 for 2022, depending on income and federal tax-filing status.
Reference: Money Talks News (Nov. 15, 2021) “Traditional Medicare Premiums Will Soar in 2022”