How Much Does Medicare Cost in 2022?
Will 2022 be the year that you get a Medicare plan? If so, you may be wondering what the costs will be for a plan in 2022. This article will cover all the different parts of Medicare and the costs. Keep reading to find what each part costs!
Original Medicare Costs
Original Medicare is health coverage managed by the United States federal government. It consists of Part A, and Part B. Part A is your hospital insurance, and Part B is your medical insurance.
Part A is free to most Medicare enrollees. If you have worked more than 40 quarters or ten years, you’re eligible for free Part A. This is because you contributed to Medicare and Social Security taxes on your paychecks. If you do not qualify for free Part A, you will be paying between $274 – $499 a month. The amount varies depending on how much you’ve paid into Medicare taxes during your working years. The most expensive cost with Part A is the deductible. The Part A deductible is $1,556 in 2022.
The typical Part B cost for most people in 2022 is $170.10 per month. Depending on your adjusted gross income, you may have to pay more. If you earned more than $91,000 two years ago, you would pay a higher premium this year. On top of the Part B monthly premium, there is also a Part B deductible. The deductible costs $233 in 2022. You’ll have to pay this $233 before your coinsurance kicks in.
Medicare Supplement Costs
Medicare supplements, also known as Medigap, are supplemental coverage to Original Medicare. In 2022, a Medigap plan costs on average $163 a month. The cost depends on several factors including zip code, age, gender, and tobacco use. Different plans have different prices, and coverage. For a full description of the most popular Medigap plans, visit boomerbenefits.com.
For example, Medigap Plan G will cost more than Medigap Plan K. This is due to Plan G being a more comprehensive plan and Plan K being a less comprehensive plan. Medigap policies are based on state regulations. There are three ways in which you can determine a Medigap policy’s pricing:
Issue-age-rated is when your monthly premium is based on your age when you buy the supplement. The older you are, the more expensive the plan can get.
Community-rated prices are based on everyone else who has the same supplemental policy. So, if inflation goes up, your plan price will go up, too.
Attained-age-rated pricing changes each year as you grow older. After your birthday, your premium will increase. For example, your premium will be less expensive when you’re 65 vs. 75.
Part D Costs
Part D plans will also vary in price depending on the plan you go with and your income. On average, Part D plans will cost $42 a month. There is also a Part D deductible which can be as high as $480 this year. If you pay more for Part B due to a higher income, then you’ll pay more for Part D as well.
Medicare Advantage Costs
Medicare Advantage, also known as Part C, varies in cost depending on the plan you choose. The average price for a Medicare Advantage plan is $33 a month. This is a private health plan which means that costs and coverage are not standard. Each policy will have its level of premiums, coinsurances, and deductibles. Shopping around to find the best Medicare Advantage plan will help you get the best deal. Working with a trusted, reputable Medicare brokerage will save you lots of time and money. They can look up costs and coverage for you that puts the best plans for you in your hands.
Get Help with Medicare
There are many parts to Medicare, and with those many parts come different costs. Original Medicare, Medicare Advantage, Part D, and Medicare Supplement plans each have their ways of pricing and costs. If you need help finding the right plan for you, contact a professional Medicare insurance agent to compare rates and plans.