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In 2022, preferential Medicare insurance will rise in price: how much will you have to pay

The federal government has announced a large increase in Medicare premiums. They cited the COVID-19 pandemic and uncertainty about how much they would have to pay for an expensive and controversial new drug for Alzheimer's. The publication told about everything in more detail. CNN.

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A 14,5% increase in Medicare Part B premiums will increase monthly payments for the lowest income earners, from $ 148,50 a month this year to $ 170,10 in 2022. Medicare Part B covers doctors 'services, outpatient hospital services, certain home care services, medical equipment, and other medical services not covered by Medicare Part A, including drugs that can be obtained from doctors' offices.

Centers for Medicare and Medicaid have downplayed this rise by noting that most people are receiving Social Security benefits and will see a cost of living adjustment (COLA) of 5,9% in their monthly payments for 2022.

"This significant increase in COLA will more than cover the increase in the monthly Medicare Part B premium," the Centers for Medicare and Medicaid Services (CMS) said. - Most people with Medicare will see a significant net increase in Social Security benefits. For example, a retiree who currently receives $ 1565 per month from social services can expect to see an increase of $ 70,40 per month after Medicare Part B premium is deducted. ”

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However, that increase is well above Medicare's estimate in their annual report, released in late August. They predicted the monthly fee for 2022 would be $ 158,50.

The increase, the largest since 2016, could be financially detrimental to some people.

"This will require the entire annual cost of living (COLA) adjustment of the lowest-paid Social Security recipients, about $ 365 a month," said Mary Johnson, a welfare and health care policy analyst with the Senior Citizens League. "Social security recipients with higher benefits should be able to cover the $ 21,60 monthly increase."

Medicare premiums generally rise much faster than annual Social Security adjustments, according to the league. And much of the increase in social security benefits in 2022 will be eaten away by inflation, which is also skyrocketing.

CMS said part of the increase for 2022 is due to uncertainty over how much the agency will eventually have to pay to treat beneficiaries who will be treated with Aduhelm, an Alzheimer's drug approved by the US Food and Drug Administration. in June. Some experts estimate that it will cost $ 56 a year.

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Because Aduhelm is administered in doctor's offices, it must be covered by Medicare Part B, not Part D plans, which pay for drugs bought at pharmacies. Traditional Medicare members must pay 20% of the cost of most Part B drugs. This will cost approximately $ 11 in cash for those who are prescribed Aduhelm.

“The Part B fee increase for 2022 is a constant indication that drug price increases threaten Medicare's affordability and sustainability,” said Chiquita Brooks-LaSour. "The administration is working to make drug prices more affordable and fair for all Americans, and to advance drug pricing reform through competition, innovation and transparency."

In addition, last year, Congress limited the increase in insurance premiums in 2021, although the cost of emergency medical care rose sharply during the COVID-19 pandemic. Monthly fees are up by less than $ 4.

Medicare is a federal health insurance plan that covers more than 62 million people, mostly 65 and older.

Part B contributions are income based. Individuals earning $ 500 or more per year, will pay $ 578,30 per month for coverage in 2022.

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Miscellanea In the U.S. pay Medicate
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