Medicare and Social Security Changes for 2022
As next year is now right around the corner, now is a great time for building your budget for a successful 2022! Therefore, in this short article you will find helpful and up-to-date Medicare and Social Security changes for 2022.
Social Security Changes
Most Social Security Beneficiaries will get an increase of 5.9% cost of lining adjustment on their basic Social Security payment beginning in January 2022. This was announced by the Social Security Administration. And it compares to the 1.9% increase we received in 2021.
There are many changes to Medicare for the year 2022. So let’s look at some of the key revisions:
Part A of Medicare (which is free to medicare beneficiaries who have contributed to social security for 40 or more quarters) has an inpatient hospital deductible. This amount is increasing from $1484 to $1556.
Part B of Medicare has a monthly premium. And for most Americans this amount will increase to $170.10, an increase of $21.60 from $148.50 in 2021.
The Part B deductible will increase to $233 for 2022, up from $203 in 2021.
Part B Income Related Adjustment Amount (IRMA):
|File individual tax return||File joint tax return||PART B COST|
|$91,000 or less||$182,000 or less||$170.10|
|>$91,000 up to $114,000||>$182,000 up to $228,000||$238.10|
|>$114,000 up to $142,000||>$228,000 up to $284,000||$340.20|
|>$142,000 up to $170,000||>$284,000 up to $340,000||$442.30|
|>$170,000 and < $500,000||>$340,000 and < $750,000||$544.30|
Many Part D Plans have a deductible and that deductible has a limit defined by The Centers for Medicare and Medicaid Services (CMS). For 2022 that limit is $480.00.
Initial Coverage Limits are generally up to $4,430 in most plans. After the retail cost of your medications hits that amount, you enter into the Coverage gap phase (also known as the donut hole). So in this phase you generally are responsible for 25% of the cost of medications, until your out of pocket costs reach $7,050. Beyond that you are in the Catastrophic coverage phase where you will be either copay or 5% of the cost of medications.
PART D IRMAA Amounts for 2022:
|$91,000 or less||$182,000 or less||Plan Premium|
|> $91,000 – $114,000||> $182,000 – $228,000||$12.40 + Plan Premium|
|> $114,000 – $142,000||> $228,000 -$284,000||$32.10 + Plan Premium|
|> $142,000 – $170,000||> $284,000 – $340,000||$51.70 + Plan Premium|
|> $170,000 – $500,000||> $340,000 – $750,000||$71.30 + Plan Premium|
|Greater than $500,000||Greater than $750,000||$77.90 + Plan Premium|
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This guide helps you learn about the different parts of the Medicare program, including Medicare Part A and Part B (together, they are often called “Original Medicare”), Part C (often called “Medicare Advantage”) and Part D (the part of Medicare that covers your prescription medications).
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We do not offer every plan available in your area. Any information we provide is limited to those plans we do offer in your area. Please contact Medicare.gov or 1-800-MEDICARE to get information on all your options.