As a Senior 65 years old or older, you probably know that while Medicare can help significantly with medical costs, it doesn’t pay for everything. You’re still responsible for paying a portion of your medical expenses like Medicare coinsurance, copayments, and deductibles.
You probably also know inflation is on the rise
, which can quickly cut into your retirement budget and planning.1
Some positive financial news for Seniors is that the Social Security Administration increased Social Security and Supplemental Security Income (SSI) benefits by 5.9% for 2022
, partly in response to this rise in inflation.2
However, the Medicare Part B premium and Medicare cost-sharing amounts, including deductibles and coinsurance, have also risen
(Note that Medicare premiums and cost-sharing amounts are adjusted annually
This means a portion of the increase in Social Security benefits will be eaten up by the Medicare Part B premium, which is automatically deducted for most beneficiaries.
This article will review the coming increase in Medicare deductibles for 2022 to help you better financially plan for the coming year.
2022 Medicare Deductibles
2022 Part A Deductible
The Medicare Part A
hospital inpatient deductible for 2022 increased to $1,556
per benefit period from $1,484 in 2021.3
This is an increase of $72, or 4.85%.
Medicare Part A deductible increase from 2021 to 2022
$1,484 in 2021 → $1,556 in 2022
An increase of $72 or ↑+4.85%
A benefit period begins the day you go into a hospital or skilled nursing facility and ends when you have been out for 60 days in a row. A new benefit period starts and the deductible happens again if you go back into the hospital after 60 days.
2022 Part A hospital inpatient coinsurance
After your Part A deductible is met, you are responsible for the following Part A hospital inpatient coinsurance during the noted periods:3
- Days 61-90: $389 coinsurance per day of each benefit period. (This is an increase of $18, or 4.85%, from $371 in 2021.)
- Days 91 and beyond: $778 coinsurance per each "lifetime reserve day" after day 90 for each benefit period (up to 60 days over your lifetime). (This is an increase of $36, or 4.85%, from $742 in 2021.)
You pay all costs beyond lifetime reserve days.
2022 Skilled Nursing Facility coinsurance
For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services in a benefit period is $194.50
(This is an increase of $9, or 4.85%, from 185.50 in 2021
Part B Deductible and Coinsurance
The Medicare Part B
deductible and coinsurance for 2022 increased to $233
plus 20 percent of the Medicare-approved amount for most doctor services after the deductible is met.3
This is an increase of $30, or 14.78%, from $203 in 2021.
Medicare Part B deductible increase from 2021 to 2022
$203 in 2021→$233 in 2022
Increase of $30 or ↑+14.78%
Other Medicare-Related Costs
If you have Medicare, you may be responsible for other costs, such as the Part A premium and the Part B premium.
Part A Premium
Most people do not pay a monthly premium for Medicare Part A (hospital insurance). However, enrollees who have paid Medicare taxes for fewer than 40 quarters do pay a monthly premium in order to voluntarily enroll in Medicare Part A (hospital insurance).3
Part B Premium
Medicare Part B has a standard premium of $170.10
for 2022, an increase of $21.60, or 14.55%, from $148.50 in 2021.3 Premiums are adjusted for beneficiaries with higher incomes
Medicare Part B premium increase 2021 to 2022
$148.50 in 2021 → $170.10 for 2022
Increase of $21.60 or ↑14.55%
Medicare Supplement plans allow you to choose any doctor that accepts Medicare.
Get details about policies that may meet your insurance needs.
Medicare Supplement Insurance
Medicare Supplement insurance policies
can help pay for some of the remaining health care costs if you are enrolled in Original Medicare.5
Purchasing a Medicare Supplement insurance policy can help pay Medicare copayments, coinsurance, and deductibles.5
Many different insurance companies sell Medicare Supplement insurance policies, have different policies to choose from, and offer a range in benefits and premium amounts. Pick the company, policy, and benefits that work best for you.
Medicare Advantage Plan
Medicare Advantage plans
offer coverage as an alternative to Original Medicare. These insurance plans are sold by private companies and approved by Medicare. They include coverage for Medicare Part A, Medicare Part B, and usually Medicare Part D. Different policies charge different amounts for out-of-pocket costs.6
If you have a Medicare Advantage plan, you can’t pair it with a Medicare Supplement insurance policy
. Medicare Supplement insurance policies can only be paired with Original Medicare.
If you have any questions about Medicare, including deductibles, visit Medicare.gov
. If you have any questions about purchasing a Medicare Supplement policy, contact a licensed insurance agent.
- bls.gov, Consumer Price Index Summary, 2021
- ssa.gov, Social Security Announces 5.9 Percent Benefit Increase for 2022, 2021
- cms.gov, 2022 Medicare Parts A & B Premiums and Deductibles/2022 Medicare Part D Income-Related Monthly Adjustment Amounts, 2021
- ssa.gov, Cost-of-Living Adjustment (COLA) Information, 2021
- medicare.gov, What's Medicare Supplement Insurance (Medigap)?, 2021
- medicare.gov, How do Medicare Advantage Plans work?, 2021
The purpose of this communication is the solicitation of insurance. United American Insurance Company is not connected with, endorsed by, or sponsored by the U.S. government, federal Medicare program, Social Security Administration, or the Department of Health and Human Services. Policies and benefits may vary by state and have some limitations and exclusions. Individual Medicare Supplement insurance policy forms MSA10, MSB10, MSC10, MSD10, MSF10, MSHDF10, MSG10, MSHDG, MSK06R, MSL06R, MSN10 and in WI, MC4810 and MC4810HD, MC4810HDG are available from our Company where state-approved. Some states require these plans be available to persons under age 65 eligible for Medicare due to disability or End Stage Renal disease (ESRD). You may be contacted by an agent or producer representing United American Insurance Company, PO Box 8080, McKinney, TX 75070-8080. OUTLINE OF COVERAGE PROVIDED UPON REQUEST.
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