Dear Emma,

Your Medicare coverage and costs can change each year, so it is important to understand and review your benefits. Here is an overview of new costs in 2022.

Part A (Hospital insurance)

• Part A premium:  
  • Free if you’ve worked 10 years or more
  • $274 per month if you’ve worked 7.5 to 10 years
  • $499 per month if you’ve worked fewer than 7.5 years

• Part A hospital deductible:  
  • $1,556 each benefit period 

• Part A hospital coinsurance: 
  • $0 for the first 60 days of inpatient care each benefit period
  • $389 per day for days 61-90 each benefit period
  • $778 per lifetime reserve day after day 90 in a benefit period 
    • (You have 60 lifetime reserve days that can only be used once. They’re not renewable.) 

• Skilled nursing facility insurance: 
  • $0 for the first 20 days of inpatient care each benefit period 
  • $194.50 per day for days 21-100 each benefit period 

Part B (Medical insurance) 

• Part B premium: $170.10 
  • If your annual income is higher than $91,000 for an individual ($182,000 for a couple), you will pay a higher Part B premium 
• Part B deductible: $233 per year
• Part B coinsurance: 20% for most services Part B covers 

Part D (Prescription drug coverage)

• National average Part D premium: $33.37 per month 
• Part D maximum deductible: $480 per year
• Coverage gap beings: $4,430
• Catastrophic coverage begins: $7,050

Note that if you have a Medigap policy, your budgeting may look a little different. You pay a monthly premium for the Medigap policy, which in turn pays part or all of certain costs after Original Medicare pays. For example, a Medigap policy can cover the cost of your Part B coinsurance or inpatient hospital deductible. Medigap premiums vary throughout the country, but in general they range from $100 to $300 per month.

If you have a Medicare Advantage Plan, your plan administers your Medicare coverage. Remember that most people with Medicare, whether they have Original Medicare or a Medicare Advantage Plan, pay the Part B monthly premium. Some people with a Medicare Advantage Plan may also pay an additional monthly premium for that plan. 

If you have the same Medicare Advantage Plan in 2022 as you did in 2021, your plan should have sent you an Annual Notice of Change (ANOC) or Evidence of Coverage (EOC) notice explaining any changes for the coming year. Review this notice to understand your plan’s costs, covered services, and rules. Contact your plan if you did not receive these documents in the fall or want another copy. If you chose a new Medicare Advantage Plan, you should get an EOC for the new plan and you can review that document to understand the costs associated with the plan for 2022.

I hope this helps with your budgeting!

-Marci