On Friday, November 12, the Centers for Medicare & Medicaid Services (CMS) announced the standard monthly premium for Medicare Part B would be increasing from $148.50 to $170.10 in 2022. This is a 15% increase ($21.60 more).
Why the Premium Spike?
Among the top reasons for the premium increase, according to CMS, is to account for the potential costs of the expensive Alzheimer’s drug, Aduhelm — which could boost Medicare spending and premiums.
Medicare beneficiaries would face high out-of-pocket costs, including a 20% coinsurance being around $11,500 for one year of the drug.
Source: Kaiser Family Foundation analysis
What the Announcement Means for Beneficiaries
Part B also covers prescription drugs administered by a healthcare provider in an outpatient setting. Medicare Part D is the prescription drug program. The CMS announcement reveals how people with Medicare are exposed to high and rising drug costs in both Part B and Part D.
It also emphasizes the need for quick solutions, including those in the most recent version of the budget reconciliation bill. The proposal would let Medicare negotiate drug costs and limit annual price increases and out-of-pocket costs.
Financial Help Is Available
Medicare’s low-income assistance programs can help qualified people afford their insurance coverage and prescription drugs. They’re known as the Medicare Savings Programs (MSPs) and the Part D Low-Income Subsidy (LIS). Many people across the U.S. qualify for an MSP and are unaware of it.
About Medicare Part B
Medicare Part B covers outpatient care, physician services, durable medical equipment, and certain other medical services not covered by Part A.
Beneficiaries can also expect to pay the annual deductible of $233 for Part B in 2022.
Need help with your Medicare costs? You may qualify to receive financial assistance from the Medicare Savings Programs (MSPs).
📲 We can help you enroll in the program you’re eligible for, so talk to Jersey Medicare Solutions today.
Thomas M. Brzezinski is one of the founding partners of WMAG William & Michael Advisor Group LLC and Jersey Insurance Solutions. He has been involved in the insurance industry for over ten years and specializes in developing client relationships that last a lifetime.
