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.
● 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)