VGMHealthcare MSO
Full Menu Search

CMS Announces Largest Hike in Medicare Part B Premiums and Deductibles in the Program's History

Published in VGM Government Relations on November 15, 2021

November 13th CMS announced that Medicare Part B premiums and deductibles will see the largest hike in the program's history next year.

Seven issues of concern…

  1. The CMS rule boosts the standard Medicare Part B premium to $170.10 a month, up $21.60, or 14.5 percent. It also increased Part B standard deductibles by $30, up 14.8 percent to $233 in 2022
     
  2. The increase translates to nearly $14,000 in annual costs for the wealthiest senior couples.
     
  3. Despite a boost in emergency Medicare spending last year, CMS raised Part B premiums less than $4.
     
  4. Part B premiums have risen 226 percent since 2000, making them one of the fastest growing costs for older Americans.
     
  5. This year, CMS attributed the Part B price hikes to rising healthcare prices and utilization, congressional efforts to limit 2021's increase and the potential to cover Biogen's expensive Alzheimer's drug, Aduhelm.
     
  6. CMS said the price hikes will be mitigated by a higher annual Social Security cost of living increase; stakeholders reported that the Medicare increase will eat up most of the record-high Social Security cost-of-living jump.
     
  7. CMS also is increasing the  Medicare Part A deductible, upping the cost per benefit period $72 to $1,556, a 4.9 percent increase.

(Forbes commentary)

The Centers for Medicare & Medicaid Services has announced Medicare Part B premiums for 2022, and the base premium increases 14.5% from $148.50 a month in 2021 to $170.10 a month in 2022. That $21.60 monthly increase ($260 a year) compares to a $3.90 monthly increase last year. Meanwhile income-related surcharges for high earners have been bumped up again too. The wealthiest senior couples will be paying nearly $14,000 a year in Medicare Part B premiums. Part B (the base and the surcharge) covers doctors’ and outpatient services.

The annual deductible for all Medicare Part B beneficiaries is $233 in 2022, an increase of $30 from the annual deductible of $203 in 2021. Last year, Congress kept the increases in the Part B premiums and the deductible in check with caps as part of a short-term budget bill. So far, no such luck this year.

The CMS announcement comes after last month’s Social Security Administration’s COLA announcement: a 5.9% cost of living adjustment for 2022, compared to the 1.3% cost of living adjustment for 2021. The average Social Security benefit for a retired worker will rise in 2022 by $92 a month to $1,657 in 2022, while the average benefit for a retired couple will grow $154 a month to $2,753.

The higher Medicare Part B premium cuts into retirees’ monthly Social Security payments. Part B premiums typically are deducted from monthly Social Security checks. You can check in December if you have an online Social Security account for your exact benefit amount.

The Part B increase will consume the entire annual cost of living adjustment of Social Security recipients with the very lowest benefits, of about $365 per month, says Mary Johnson, Social Security and Medicare policy analyst with The Senior Citizens League. Medicare Part B premiums tend to grow several times faster than Social Security benefits cost-of-living adjustments almost every year, and rising Part B premiums have ranked as one of the fastest growing costs that older Americans face in retirement, increasing 226% since 2000, Johnson says.

CMS says 7% of Medicare recipients will have to pay income-related surcharges. Earn $1 more in income, and you’re hit with the next highest monthly surcharge, meaning you could be paying $800 or more a year ($1,600 or more a year for a couple) in Medicare Part B premium surcharges.

The graduated surcharges for high-income seniors kick in for singles with modified adjusted gross income of more than $91,000 and for couples with a MAGI of more than $182,000. An individual earning more than $91,000, but less than or equal to $114,000, will pay $238.10 in total a month for Part B premiums in 2022, including a $68 surcharge. That’s up 14.5% from 2021, when they paid $207.90 total in a month, including a $59.40 surcharge.

TAGS

  1. covid-19
  2. osha

From Our Experts

Action Alert: Support H.R. 10787 to Protect Patient Access to Urological and Ostomy Supplies thumbnail Action Alert: Support H.R. 10787 to Protect Patient Access to Urological and Ostomy Supplies The DMEPOS community has an important opportunity to protect access to vital urological and ostomy supplies for Medicare beneficiaries. Rep. Greg Murphy (R-NC) and Rep. Brad Schneider (D-IL) have introduced H.R. 10787, bipartisan legislation that would amend Title XVIII of the Social Security Act to exclude urological and ostomy supplies from Medicare competitive acquisition programs for five years... CMS Announces Registration and Bid Window Dates for Round 2028 of the DMEPOS Competitive Bidding Program thumbnail CMS Announces Registration and Bid Window Dates for Round 2028 of the DMEPOS Competitive Bidding Program Yesterday, CMS announced the Round 2028 bidding details with registration opening December 1, 2026, and the bid window opening January 5, 2027. The new Round 2028 timeline is as follows... Congratulations to CAMPS On This Important Legislative Victory thumbnail Congratulations to CAMPS On This Important Legislative Victory The signing of AB 1794 is another reminder of the critical role state associations play in shaping healthcare policy, removing barriers to patient care, and ensuring providers have a seat at the table when important decisions are made. Legislative successes like this do not happen by accident. They are the result of engaged members, strong advocacy efforts, and collaboration with policymakers to address real-world challenges facing providers and the patients they serve. S.247, Choices for Increased Mobility Act of 2025, Passes U.S. Senate thumbnail S.247, Choices for Increased Mobility Act of 2025, Passes U.S. Senate S.247, Choices for Increased Mobility Act of 2025 has passed in the Senate through unanimous consent. It now heads to the President to be signed into law. Introduced in the Senate by Sen. Tammy Duckworth (D-IL), The Choices for Increased Mobility Act of 2025 would... August Recess Recap: Building Relationships, Advancing Advocacy thumbnail August Recess Recap: Building Relationships, Advancing Advocacy As Congress worked through the August recess, the VGM Government Relations team remained actively engaged in securing meetings and building relationships with legislators, candidates, and key congressional staff across the country. This summer, the team made a strategic decision to focus getting a strong balance between Republican and Democratic offices, recognizing the importance of broadening support for DMEPOS priorities and ensuring policymakers from both parties understand the challenges.. Introducing Patient Voices: Access to HME Matters thumbnail Introducing Patient Voices: Access to HME Matters The VGM Government Relations team is excited to announce Patient Voices: Access to HME Matters, a new way for patients, providers, vendors, caregivers, and industry partners to share their experiences with home medical equipment. Every story matters. AAHomecare Survey Results of RID Program thumbnail AAHomecare Survey Results of RID Program Thank you to AAHomecare for initiating this important survey demonstrating the significant risks to the DMEPOS industry should Remote Item Delivery Competitive Bid Program (RID CBP) Round 2028 move forward as is. VGM Group is proud to support the survey efforts to maximize provider participation. See below for the survey summary and analysis. Competitive Bidding Update: NPEast and NPWest Updating Licensure Requirement Information for Competitive Bidding Product Categories thumbnail Competitive Bidding Update: NPEast and NPWest Updating Licensure Requirement Information for Competitive Bidding Product Categories Per the Remote Item Delivery Competitive Bidding Program (RID CBP) Round 2028 requirements, bidders must meet all business and product category licensure requirements across every state, the District of Columbia, and the U.S. territories to be eligible to be a contract winner.

Unlock everything you need to successfully run your business. 

Become a Member