(800) 549-1664 TTY 711
Speak to a licensed insurance agent
M-F: 8am - 10pm ET
Sat-Sun: 9am - 6pm ET
Sat-Sun: 9am - 6pm ET
Every year the government’s rules about Medicare costs and coverages change. As you prepare for the Annual Enrollment Period for 2022, it’s important to know how these changes could affect your future coverages and costs. With Medicare plans changing each year, it can be hard to keep up. Luckily, we’ve got a guide to the important changes you need to know about to prepare for the October 15th - December 7th Annual Enrollment Period.
Most years the Original Medicare—Parts A and B—deductibles and premiums have a slight rise in cost, and 2022 is no exception.
Most people don't pay a monthly premium for Part A (sometimes called "premium-free Part A"). Those who worked and paid Medicare taxes for less than 10 years or are not receiving Social Security could need to purchase Part A. If you need to buy Part A, you'll pay up to $471 each month in 2021.
The 2021 cost for the Part A deductible is $1,484 for each benefit period. The Part B deductible is $203, along with a monthly Part B premium of $148.50 for the average Medicare recipient. All of these costs can be expected to increase slightly for 2022.
Part D will have a new lower-cost share “specialty tier” starting in 2022. This change will happen at the level of the plan itself being able to negotiate for lower-cost plans, and may result in lower monthly rates for prescription drugs for some enrollees. The average 2022 premium for Part D coverage will be $33 per month, compared to $31.47 in 2021.
The “donut hole”—or coverage gap between the maximum payout for Part D prescription drug coverage and catastrophic coverage—has slowly been closed over the last 10 years. Now that this “donut hole” is fully closed, anyone falling into this gap in coverage is only expected to pay 25% of the cost of prescription drugs, so combined with the Extra Help program and the specialty tier in 2022, there are more options available to Medicare enrollees struggling to pay their share of prescription drug costs
Medicare Parts B and D both have high-income brackets for individuals making a certain amount per year. These enrollees are asked to pay a higher monthly premium to access the same care, but the amount that qualifies as “high-income” is changing in 2022 to adjust to inflation.
Starting January of 2022, the threshold for being classified as a high-income premium bracket enrollee is moving up by $3,000. Only enrollees who make $91,000 a year or more will qualify as high-income.
Telehealth options for many different aspects of care will be offered as part of the new 2022 Medicare Advantage plans. More comprehensive telehealth options for primary care, dermatology, cardiology, psychiatry, endocrinology, and gynecology will be available starting in 2022. Some telehealth options were added in response to COVID-19, and these offerings are being expanded in 2022. This is also in response to general demand for easier access to health care from home.
Since the Annual Enrollment Period of October 2020, enrollees with end-stage renal disease—ESRD—have been allowed to choose a Medicare Advantage plan, regardless of pre-existing coverage. This is a newer development, thanks to the 21ˢᵗ Century Cures Act, a piece of legislation that expands coverage rights for ESRD patients.
Medicare Advantage plans will also have lower average monthly premiums this year. The average monthly premium for Medicare Advantage plans in 2021 was $21.22, and it will drop down to an average of $19 per month in 2022. Projected enrollment in Medicare Advantage plans continues to increase.
Most of the Medicare changes for 2022 are expected raises to premiums in response to inflation. However, there are a few changes to payment structure and what types of care are offered under many of the most popular plans. To learn more about specific changes that might affect the health coverage you want, give one of our Health IQ licensed insurance agents a call at (800) 549-1664 to find a health plan that fits your needs.
