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New Year = New Medicare Costs

New Year = New Medicare Costs

Posted: December 1, 2021

DECEMBER 2021

NEW YEAR = NEW MEDICARE COSTS

Did you know that Medicare adjusts their out-of-pocket amounts annually on January 1st? If you have the WEA-MedPlus plan, we match these new amounts. No need to worry about those extra costs!

When changes are made by Medicare, there are 3 main benefit areas that are affected: the Part A deductible and coinsurance, the Part A skilled nursing facility coinsurance and the Part B deductible. A summary of these updates from 2021 to 2022 can be found here:

 


2021

2022

Part A deductible and coinsurance

· $1,484 deductible for each benefit period

· Days 1-60: $0 coinsurance for each benefit period

· Days 61-90: $371 coinsurance per day of each benefit period

· Days 91 and beyond: $742 coinsurance per each "lifetime reserve day" after day 90 for each benefit period(up to 60 days over your lifetime)

· Beyond lifetime reserve days: all costs

· $1,556 deductible for each benefit period

· Days 1-60: $0 coinsurance for each benefit period

· Days 61-90: $389 coinsurance per day of each benefit period

· Days 91 and beyond: $778 coinsurance per each "lifetime reserve day" after day 90 for each benefit period(up to 60 days over your lifetime)

· Beyond lifetime reserve days: all costs

Part A skilled nursing facility

· Days 1–20: $0 for each benefit period

· Days 21–100: $185.50 coinsurance per day of each benefit period

· Days 101 and beyond: All costs

· Days 1–20: $0 for each benefit period

· Days 21–100: $194.50 coinsurance per day of each benefit period

· Days 101 and beyond: All costs

Part B deductible

· $203 – after your deductible is met, you typically pay 20% of the Medicare-Approved Amount for most doctor services (including most doctor services while you're a hospital inpatient), outpatient therapy, and durable medical equipment (DME)

· $233 – after your deductible is met, you typically pay 20% of the Medicare-Approved Amount for most doctor services (including most doctor services while you're a hospital inpatient), outpatient therapy, and durable medical equipment (DME)

 

The Medicare Part A and Part B premiums also typically adjust as well. For Part A, most beneficiaries (approx. 99%) usually pay $0. If you've worked 40 quarters (10+ years) in the US, you have already paid for Part A via payroll taxes, therefore you have no cost now. If you must buy Part A, the cost is $499/month (for 2022). People with less than 40 quarters, but more than 30 quarters can get a pro-rated premium of $274/month (for 2022). Medicare Part B works a little differently. These premiums are based on your modified adjusted household gross income (MAGI). The Social Security office will pull your IRS tax return from two years prior to determine what you will pay for Part B. For 2022, the monthly premium for Part B is $233, which is the standard amount. Only about 5% of beneficiaries pay more due to higher incomes. Interested in the income brackets? See the chart below to find out what you will pay in 2022.


Medicare 2022 Part B Premiums by Income 

(based on your filing status and yearly income in 2020)

File Individual Tax Return

File Joint Tax Return

File Married & Separate Tax Return

Monthly Premium in 2022

$91k or less

$182k or less

$91k or less

$170.10

Above $91k up to $114k

Above $182k up to $228k

n/a

$238.10

Above $114k up to $142k

Above $228k up to $284k

n/a

$340.20

Above $142k up to $170k

Above $284k up to $340k

n/a

$442.30

Above $170k and less than $500k

Above $340k and less than $750k

Above $91k and less than $409k

$544.30

$500k and above

$750k and above

$409k and above

$578.30

 

It's a good idea to review these amounts annually as they may be adjusted every few years.

If you have any questions on your WEA-MedPlus plan and how the 2022 changes will affect you, please give our friendly Customer Service team a call at 1.800.279.4000.

Have a safe and wonderful holiday season!

 

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