Social Security Tips – December 2021 (2022 Medicare Changes)

2022 Medicare Changes

The Centers for Medicare & Medicaid Services (CMS) released the 2022 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs.

Medicare Part B Premiums/Deductibles

Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment, and certain other medical and health services not covered by Medicare Part A.  

The standard monthly premium for Medicare Part B enrollees will be $170.10 in 2022, an increase of $21.60 from $148.50 in 2021. The annual deductible for Medicare Part B beneficiaries is $233 in 2022, an increase of $30 from $203 in 2021.

Medicare Part A Premiums/Deductibles

Medicare Part A covers inpatient hospital, skilled nursing facility, and some home health care services. About 99 percent of Medicare beneficiaries do not pay a Part A premium since they have at least 40 quarters of Medicare-covered employment.

The Medicare Part A inpatient deductible that beneficiaries will pay when admitted to the hospital is $1,556 in 2022, an increase of $72 from $1,484 in 2021.

Income Related Monthly Adjustment Amount (IRMAA)

The standard Part B premium amount in 2022 is $170.10. Most people pay the standard Part B premium amount. If their modified adjusted gross income as reported on their IRS tax return from 2 years ago is above a certain amount, they’ll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to their premium. Check out the 2022 IRMAA Chart: Medicare costs at a glance | Medicare.

For a fact sheet on the 2022 Medicare Parts A & B premiums and deductibles, including the Income Related Monthly Adjustment Amounts (IRMAA) please visit: 2022 Medicare Parts A & B Premiums and Deductibles/2022 Medicare Part D Income-Related Monthly Adjustment Amounts | CMS

The Q & A for the month:

Question: My Client received a notice that because they claimed a large income in 2020 (panicked and sold all their long term holdings) their Medicare premiums are going to increase significantly. They were given the option to appeal but this scenario is not in the list of things that could impact it on the appeal form. Can you tell me if it’s worth our time to reach out and discuss an appeal or if it doesn’t fit in those categories it isn’t going to happen?

Answer: Your client can file an appeal if they disagree with the decision. For details regarding an appeal, check out the factsheet: What You Can Do if You Think Your Medicare Income-Related Premium is Incorrect. If your client has experienced a life-changing event, such as marriage, divorce, death of spouse, retirement, or loss of income, have your client complete Form SSA-44 and return to their local Social Security office. If neither apply, then your client will pay the increased Medicare Part B premium. The amount is recalculated annually based on the tax return from two years prior so their 2023 premiums will be based on the 2021 tax return. Check out the Rules for Higher Income Beneficiaries web page for more details.