Whats new in 2022

Its almost that time again……Annual Enrollment! So if you’re 65 or on disability chances are you’re on medicare. If you’re happy with the medicare plan you currently have great . However you should be aware that the part B premium will be going up.  So thankfully, you’re Social Security will be increasing as well. This is all based on the cost of living index otherwise known as COLA. A final announcement of what the COLA will be for next year will be in October 2021. This gives those who choose what the adjustment will be less than a month to decide what the rate will be.

A little clarification

In 2021, the COLA rose by 1.3%, pretty standard for times of normality in the US economy. For the average retirement benefit, that amounted to $20 more per month for a total of $1,543. However, for 2022 it is projected to be radically different.

You should expect that in 2022 the COLA is to be 6.0%, So in January 2022 the new average payment would be $1,628.

If you don’t qualify for extra help and do not fall in the Income Related Monthly Adjustment Amount or IRMAA category you currently pay $148.50 per month. It is estimated that you should expect to have the highest single year increase since the transition from 2015-2016. This estimation brings it to $158.50 per month. If someone is getting Part B paid for by Extra Help or Medicaid, that subsidy would likely increase to offset the additional $10 per month.

In conclusion

 ● You should expect the average premium for Medicare Advantage plans will be lower in 2022 at $19 per month as compared to $21.22 last year.(2)

● Part B deductible(s) will go up from $203 to $217.(2)

● You’re Part B premium will go up from $148.50 to $158.50.(3)

● The average 2022 premium for Part D coverage will be $33 per month; an increase of $1.53 cents from 2021 ($31.47).(3)