Premiums and Deductibles
Published by Ritter Insurance Marketing
The Centers for Medicare & Medicaid Services have announced the 2022 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs. This year’s Part B premium increase is the largest monetary cost jump in history, though not percentage-wise. We detail the cost changes for Original Medicare below!
Part B – Highest-Ever Increase by Dollar Amount
On Friday, November 12, CMS announced that the monthly Medicare Part B premium will be $170.10 for 2022, an increase of $21.60 from $148.50 in 2021. The annual deductible for Medicare Part B beneficiaries increased $30, from $203 in 2021 to $233 in 2022. This 14.5 percent increase is the third largest since 2007.
Whether the Part B monthly premium increases or decreases is affected by the annual Cost of Living Adjustment (COLA), which is rising this year to a historic 39-year high. A rise in COLA typically means there will be a rise in Part B premiums. A beneficiary’s annual income directly impacts their monthly Part B premium.
However, CMS ensures that this year’s COLA increase “will more than cover” the simultaneous rise in premium and deductible prices.
Here’s how your clients’ annual incomes will affect their Medicare Part B monthly premiums for 2022:
| File Individual Tax Return | File Joint Tax Return | Monthly Adjustment | 2022 Part B Monthly Premium | ||
| File Separate Tax Return from Spouse | Monthly Adjustment | 2022 Part B Monthly Premium | |||
| $91,000 or Less | $182,000 or Less | $0.00 | $170.10 | ||
| $91,001 to $114,000 | $182,001 to $228,000 | $68.00 | $238.10 | ||
| $114,001 to $142,000 | $228,001 to $284,000 | $170.10 | $340.20 | ||
| $142,001 to $170,000 | $284,001 to $340,000 | $272.20 | $442.30 | ||
| $170,001 to $499,999 | $340,001 to $749,999 | $374.20 | $544.30 | ||
| $500,000 or More | $750,000 or More | $408.20 | $578.30 | ||
| $91,000 or Less | $0.00 | $170.10 | |||
| $91,001 to $408,999 | $374.20 | $544.30 | |||
| $409,000 or More | $408.20 | $578.30 | |||
Part A
Medicare Part A is premium-free for more than 99 percent of beneficiaries. Less than one percent of Medicare beneficiaries must pay the Part A premium because they do not have at least 40 quarters of Medicare-covered employment. Those who have paid Medicare taxes for less than 30 quarters will pay a Part A premium of $499 per month in 2022, up from $471 per month in 2021 — a $28 increase. Beneficiaries who have paid Medicare taxes for 30 to 39 quarters will pay a Part A premium of $274 per month in 2022, up from $259 per month in 2021.
The Medicare Part A inpatient hospital deductible that beneficiaries will pay when admitted to the hospital for 2022 will be $1,556, which is an increase of $72 from $1,484 in 2021. Part A coinsurance amounts will increase in 2021 as shown in the table below.
2022 Part A Deductible & Coinsurance Amounts
| Type of Cost Sharing | 2021 | 2022 |
| Inpatient Hospital Deductible | $1,484 | $1,556 |
| Daily Coinsurance for Days 61 to 90 | $371 | $389 |
| Daily Coinsurance for Lifetime Reserve Days | $742 | $778 |
| Skilled Nursing Facility Coinsurance | $185.50 | $194.50 |
The best insurance agents are the most knowledgeable about information like this that directly impacts the abilities of their clients to afford quality Medicare coverage. By staying up to date, you can serve as a well-informed, reliable, and trusted guide for your clients throughout the insurance sales process. Editor’s Note: Table information is from The Centers for Medicare & Medicaid Services.