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.