With inflation affecting everything from groceries to gas, it’s no surprise that Medicare’s 2022 significant increases are hitting people where it hurts. Medicare’s Part A and Part B premiums, deductibles, and coinsurance increase in 2022. Your 2022 annual Part B premium and deductible are $482 more than just 5 years ago!
The current administration has passed the Inflation Reduction Act which lowers prescription drug costs.
Inflation increased Medicare Part B Premium and Deductible
In 2022, inflation hit Medicare Part B costs. Your 2022 Part B premium and deductible are $288 more than 2021 and $482 more than 5 years ago. (Sorce: Medicare.gov)
Annual Base Medicare Part B premium: $2,041.20*
Annual Part B deductible: $233
The chart details how inflation has affected Medicare Part B costs from one year ago and five years ago.
| Medicare Part B Inflation over 5 Years | |||
|---|---|---|---|
| 2017 | 2021 | 2022 | |
| Part B Premium* | $134 | $148.60 | $170.10 |
| Deductible | $183 | $203 | $233 |
*These numbers are based on the Part B Standard rate. Your Part B monthly premium can be higher based on income. It can be as high as $578 a month for high-income individuals.
2022 Inflation increased Medicare Part A out-of-pocket costs
Inflation takes a strong punch at your Medicare Part A out-of-pocket costs. The compelling increases are seen in your Medicare A deductible and coinsurance. For example:
- 90 days in the hospital: You’ll pay $2000 more than 5 years ago
- 90 days in Skilled Nursing: You’ll pay $2140 more than 5 years ago
Good news: inflation isn’t an issue for Part A premiums (for most people). The majority of seniors who are 65 and older** who are Medicare-eligible will not pay the Part A premium ($274 or $499***). Generally, if you or your spouse have worked and paid taxes for 10 periods, you’ll qualify for premium-free Part A.
If you have to pay your Medicare Part A premium, this is how much inflation has increased your premium:
- Worked 7.5 -10 years: You’ll pay $564 more than 5 years ago
- Worked less than 7.5 years: You’ll pay $1032 more than 5 years ago
**If you’re Medicare-eligible because of disability and under 65, Medicare Part A is always premium-free
| Medicare Part A Inflation over 5 Years | |||
|---|---|---|---|
| Medicare Part A Benefits | 2017 | 2021 | 2022 |
| Premium (if you don’t qualify for premium-free Part A) | $227 or $413 | $259 or $471 | $274 or $499*** |
| Inpatient hospital deductible | $1,316 | $1,484 | $1,556 |
| Hospital coinsurance per day cost for Days: 61st-90th | $329 per day | $371 per day | $389 per day |
| Hospital coinsurance per day for lifetime reserve days**** | $658 per day | $742 per day | $778 per day |
| Skilled Nursing Facility coinsurance | $164.50 per day | $185.50 per day | $194.50 per day |
***You’ll pay $274 if you worked 30-39 quarters (7.5 years – just shy of 10 years) or you’ll pay $499 if you worked less than 30 quarters (less than 7.5 years).
****Medicare Part A hospital coverage has 60 reserve days. For any time you’re in the hospital beyond 90 days, you’ll eat away at this cap. Once this runs out, you’ll pay 100% of your hospital costs.
Medigap can shield you from Medicare’s Inflation
As you can see, inflation has momentously affected Medicare over the past 5 years. Medigap can shield you from inflation.
While Medigap doesn’t pay toward your Part A and B premiums, it can cover your skyrocketing Medicare out-of-pocket costs, including Part B Excess Charges.
There are 8 Medigap plans that cover varying Medicare out-of-pocket costs. Medigap Plan G offers strong financial protection from inflation affected Medicare fees. This is accomplished by covering all Medicare’s out-of-pocket costs except for your Part B deductible.
Get a Medigap Quote Enroll in Medigap
Next Steps
If you want a Medigap to protect you from Original Medicare’s increasing costs, call one of our licensed agents at 800-930-7956.
Our agents cannot charge you a fee for a quote or to enroll you in a Medicare health plan.