Medicare Premiums and Deductibles are increasing in 2022, but so is Social Security. The premium for Medicare Part B is increasing a surprising 14.5% for 2022(1) The Centers for Medicare & Medicaid Services (CMS) say the increase is due to three factors:
- Increased use of the health system
- Congress restricted the amount premiums could increase in 2021 due to COVID and now it needs to be made up
- Medicare is setting aside money to potentially cover expensive Alzheimer’s medications(2)
Annual deductibles are also going up. The Part B deductible is increasing by $30 for 2022 and the Part A deductible is increasing $72(3).
Happily, the Social Security cost of living adjustment is increasing by 5.9% which for most retirees will more than cover the increased Medicare expenses. This is the largest Social Security benefit increase since 1982(4).
Here are some articles for those who want more information:
- CMS Announces 2022 Medicare Part B Premiums
- Medicare Increase – AARP
- Medicare Part B Premium Increases by 14.5% – CNBC
- Social Security redesigned your statement – MarketWatch
Footnotes
- https://www.cms.gov/newsroom/press-releases/cms-announces-2022-medicare-part-b-premiums
- https://www.aarp.org/health/medicare-insurance/info-2021/part-b-premiums-increase.html
- https://www.cms.gov/newsroom/press-releases/cms-announces-2022-medicare-part-b-premiums
- https://www.ssa.gov/oact/cola/colaseries.html
For more information, please reach out to any of the professionals at Cedar Cove Wealth Partners.
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