CMS Announces Huge Increases to Medicare Premiums for 2022

The federal government has finally announced Medicare premiums for 2022, allowing beneficiaries a little over 3 weeks of budgeting time before the end of the Medicare Annual Enrollment Period (AEP). Medicare premiums are usually announced in late October or early November, but it has taken longer than normal to release the numbers this year, with officials blaming the pandemic and uncertainty over a new Alzheimer’s drug for the delay. So what kind of an increase can Medicare beneficiaries expect for the new year?

Medicare Part B Premiumsarrows going up with a hand holding a magnifying glass over them

Unlike Medicare Part A (hospital insurance), Medicare Part B (medical insurance), which covers doctor visits, outpatient services, and medical equipment, has a monthly premium that increases each year. This year, there will be a 14.5% increase in Part B premiums, far outpacing an earlier estimate of 6.7%, which will take premiums for beneficiaries in the lowest income bracket from $148.50 a month to $170.10 a month. Officials at the Centers for Medicare and Medicaid Services (CMS) insist, though, that this increase will not be a burden on beneficiaries.

“Most people with Medicare will see a 5.9% cost-of-living adjustment (COLA) in their 2022 Social Security benefits—the largest COLA in 30 years. This significant COLA increase will more than cover the increase in the Medicare Part B monthly premium,” CMS said in a statement.

“Most people with Medicare will see a significant net increase in Social Security benefits. For example, a retired worker who currently receives $1,565 per month from Social Security can expect to receive a net increase of $70.40 more per month after the Medicare Part B premium is deducted.”

Medicare Deductibles 

Medicare Part B Deductible

The Medicare Part B annual deductible will also see a big increase next year.  It will increase by $30 from last year’s amount, making it $233 in 2022. That’s a 14.8% increase!

Medicare Part A Deductible

Medicare Part A does not have a monthly premium, but it does have an annual deductible; for 2022 it will be $1,556, up $72 from this year’s $1,484.

white round pills falling out of a bottle laying sideways
The cost of the new Alzheimer’s drug, Adulhem, is the cause for the increase in Medicare premiums.

Why the Delay and Why the Huge Increase?

CMS has said that part of the increase in premiums and deductibles is due to the uncertainty over how much the government will end up paying for the new Alzheimer’s drug, Adulhem. The drug, which was approved by the FDA in June, is the first Alzheimer’s medication in nearly 20 years and is estimated to cost about $56,000 a year per patient. That means if Medicare beneficiaries have to pay 20% of the cost of the drug, they would be facing $11,500 in out-of-pocket expenses just for this one medication. Medicare is still assessing whether they should cover the drug or not, and is hoping to have a decision by the spring. For now, Medicare is deciding on a case-by-case basis.

“The increase in the Part B premium for 2022 is continued evidence that rising drug costs threaten the affordability and sustainability of the Medicare program,” said Medicare chief Chiquita Brooks-LaSure in a statement.

These jumps in Medicare rates are the largest increases we have ever seen, so we understand that you’re worried about budgeting and being able to afford your medical expenses. The best way to better prepare for the 2022 rates is to find an affordable Medicare Supplement Plan – and the best way to do that? Speak to an EZ agent! We work with the top-rated insurance companies in the nation and can help find a plan that will save you money in the new year –  maybe even hundreds of dollars. Let our agents take the stress off you and help you budget for the new year by comparing plans and finding ways to help you save money. And because we want to help you save more, our services are completely free- no obligation or hassle. To get free instant quotes for plans that cover your current doctors, simply enter your zip code in the bar on the side, or to speak to a licensed agent, call 888-753-7207.

Surprise Bills Could Be Coming! Get To Know What’s Changing With Medicare in 2020

Big changes are coming for Medicare next year, affecting your coverage and wallet. Medicare Supplement plans C and F will disappear. Part B premiums and deductibles will rise.  And for the first time since 2010, Medicare is changing the surcharges on high-income beneficiaries. Make sure you aware of all the changes ahead so you can make the necessary adjustments to fit both your needs and budget.

Part B

For 2019, the standard Medicare Part B premiums are $135.50 a month. Next year’s increase is projected to be about $144.30 a month. 

Many seniors depend on Social Security to help pay for their premiums. For 2020, Social Security’s COLA, or cost of living adjustment, is expected to be about 1.6%. This would increase the benefit to $23 a month, which will in turn cover the increase in Part B premiums.

Medicare Premium and deductible prices for  2020 chart

The Part B deductible was $185 in 2019, and is now projected to increase to $197. In order to help pay for the deductible, Medicare beneficiaries will be forced to sign up for a Medicare Supplement plan. 

Medicare Supplement Plans C and F

As mentioned, Medicare Supplement plans help beneficiaries pay for their Part B deductible. Plans C and F will no longer be available for purchase by newly-eligible Medicare beneficiaries. 

As long as the beneficiary is enrolled in Medicare before 2020, they can keep their plan C or F, or can apply for them at a later date. These two plans are popular plans because they are the only ones that cover the Part B deductible in full. 

Medicare Surcharges

With these monthly payments, Medicare covers 80% of charges, and the other 20% is up to the beneficiary. Some seniors have a higher income than others, and as a result, they also pay a higher price. 

This higher price is referred to as a “surcharge”. The surcharges are imposed because these higher-income beneficiaries can afford to pay more for healthcare. The surcharge is called IRMAA, which stands for Income-Related Monthly Adjustment Amount.

For the past couple of years, high-income beneficiaries were in the set income bracket of $85,000 for an individual, and $170,000 for a married couple. Starting in 2020, the income brackets will be adjusted for inflation. 

2019 & 2020 Medicare Surcharges chart
2020 Medicare Surcharges

The surcharge will now apply for those making an income of $87,000 as an individual, and $174,000 for a married couple. Premiums in 2019 range from $189.60 a month to $460.50 a month, depending on income. For 2020, these amounts are projected to range from $202 a month to $490.50 a month, depending on income.

The Centers for Medicare and Medicaid Services have not announced the actual increase in Part B premiums and deductibles yet. However, the projections are enough to make a Medicare beneficiary prepare for the upcoming changes. Seek out any Medicare Supplement plans you might want to get, especially if it is plan C or F.

Do not be in disarray or panic about the changes ahead. If you are enrolled in Medicare, signing up for a Medicare Supplement plan does not have to be a hassle. EZ.Insure can take care of the research of all the plans within your region, provide you with the best options that meet your coverage and price, and sign you up. You will be given your own personal agent who is highly trained within your region. We offer you all of these services for free! To get started, simply enter your zip code in the bar above, or to speak with an agent, email, or call 888-753-7207.

2019 Medicare Deductibles & Copays Are Out

This past October, the CMS released the new rates for Medicare deductibles and copays for 2019. It is important to review the new rates to determine if it is affordable for you and your situation. If you can not afford the raised rates, then now would be the time to make some budget changes, or consider a Medicare Supplement plan. Most, if not all, Medicare Supplement plans will cover the deductibles and copays.

The New Rates

    • Medicare Part A Hospital Deductibles have gone up $24 from 2018. It is now $1,364.
    • Medicare Part A Deductible for a Skilled Nursing Facility for days 20-100 have gone up $3 per day since last year. The cost is now $170.50 per day.
    • Medicare Part B Deductible has gone up $2 from 2018. It now costs $185.
    • Medicare Part B Premiums have gone up $1.50 from 2018. Premiums will be $135.50 a month.
  • Annual income rates have increased; if your income was greater than $85,000 single or $170,000 couple, then you will face additional costs for Medicare Part B premiums. About $2.10 more a month.

2019 Medicare premiums are going up based on income.
2019 Medicare premiums are going up based on income.

The day before the Medicare rates were announced, the Social Security Administration had its own announcement. The Administration set a 2.8% cost-of-living adjustment, COLA, to 2019 social security benefits. Thanks to the “hold harmless” provision, almost 2 million Medicare beneficiaries will not have to pay the full Part B monthly premium payments of $135.50. Hold harmless is the guarantee that a Medicare beneficiary receives limiting how much their Part B premiums can go up. The premiums can not be greater than the increase in their Social Security benefits. However, this only applies to 3.5% of Medicare beneficiaries. So what are the rest to do?

Plan Ahead

If you can not budget the new Medicare premiums for 2019, then a Medicare Supplement can help.
If you can not budget the new Medicare premiums for 2019, then a Medicare Supplement can help.

Even though the costs have increased only by a couple of dollars a month, the $2 can add up throughout the year. It can change the budget for a lot of people, and some will be struggling to fit it into their budget. If you are one of these people who worry how you are going to pay these extra costs, then looking into a Medicare Supplement plan would be beneficial. There are 10 different kinds of Medicare Supplement plans that you can look into. Most of these plans will pay the deductibles and copays, and offer extra benefits that Original Medicare does not offer.

Researching and comparing the different kinds of Medicare Supplement plans can be frustrating. EZ.Insure offers highly trained agents in your region that specialize with Medicare Supplement plans. They can go over your needs with you, compare plans, and provide you with quotes instantly. To get a quote enter your zip code in the bar above, or contact an agent by calling 888-753-7207, or emailing We make the process easier for you, so you do not have to stress or miss an important detail.