In October, the Social Security Administration announced a 5.9% cost of living increase, the largest increase in 40 years. With a large COLA, Medicare costs were expected to increase as well. In November, the Center for Medicare and Medicaid Services announced the 2022 Medicare costs.
The Part B Premium will increase 14.5% to $170.10. The annual deductible for Part B is also increasing by $30 to $233. In addition to Part B costs, hospital costs under Medicare Part A are set to increase in 2022 as well. The inpatient deductible is increasing to $1556, an increase of $72 with additional increases for each day over 60 days. The skilled nursing facility coinsurance for days 21-100 is also increasing by $9.00 per day to $194.50.
According to the Center for Medicare and Medicaid Services, the reason for the significant increase is due to rising prices as well as increased utilization for healthcare. By law, the Part B premium must equal 25% of the estimated cost for Part B services. With increased costs expected for 2022, the Part B premium had to increase. One way to help limit the increase in Medicare costs from year to year is to help prevent healthcare fraud. It is estimated that 10% of Medicare spending is fraudulent. By reviewing your claims, you can help reduce fraud, lowing Medicare costs for everyone.
If you have limited income and resources, you may qualify for assistance paying the Part B premium. To find out if you may qualify or to get help applying for assistance, contact the SHIP program at (435) 673-3548.
Amy Brinkerhoff has worked for the Five County Association of Governments for almost ten years. She graduated from Brigham Young University in 2008 with a degree in Sociology. Amy has been a SHIP counselor since her first week at Five County and now serves as Coordinator for the SHIP and SMP programs, where she offers one-on-one Medicare Counseling and teaches classes on Medicare topics and Fraud prevention.