Medicare premiums increase every year. That’s not surprising. The cost of everything tends to go up over time. You can blame inflation for that. When it comes to health care, costs go up to account for advances in medical technology too. In 2022, those increases are higher than they’ve ever been. Part of that is because Medicare chose to cover the new Alzheimer’s disease drug Aduhelm.
Definitions You Need to Know
Premium = The amount you pay every month to have your health plan, even if you don’t use any services that month. (If you don’t pay your premiums, you will not have access to that coverage.)
Deductible = The amount you have to pay each year before your benefits kick in
Coinsurance = A fixed percentage you have to pay for a service
Copayment = A fixed dollar amount you have to pay for a service
2022 Medicare Part A Costs
Most people get Part premiums for free. This applies to people who have worked 40 quarters (10 years) in Medicare-taxed employment. Likewise, they would not need to pay premiums if their spouses had worked that amount of time. Someone who worked 30 to 39 quarters would pay $274 per month ($3,288 per year). Those who worked < 30 quarters, would pay $499 per month ($5,988 per year).
If you are lucky, you will never need to use Medicare Part A. You would never need hospitalization, you would never need a skilled nursing facility, and you would never need hospice care.
You will pay a set amount for each hospital benefit period. In 2022, those costs are as follows:
| Day of Inpatient Hospital Care | Your 2022 Costs |
| Inpatient hospital deductible for days 0-60 | $1,556 per hospital stay |
| Inpatient hospital copayment for days 61-90 | $389 per day |
| Inpatient hospital copayment for days 91+ | $778 per day |
In the event you need to go to a skilled nursing facility (SNF) after your hospital stay, this is what you can expect to pay:
| Day of SNF Care | Your 2022 Costs |
| SNF days 0-20 | $0 |
| SNF days 21-100 | $194.50 per day |
| SNF days 100+ | You pay all costs out of pocket |
2022 Medicare Part B Costs
If you are on Medicare, whether you are on Original Medicare or a Medicare Advantage plan, you will pay Part B premiums. The only time you won’t is if you qualify for a Medicare Savings Program.
Part B Medicare premiums are not the same for everyone. The cost increases based on your income, and Medicare will assign you to one of six different income brackets based on your taxes from two years ago.
| Your 2020 Annual Income | Your 2022 Part B Premium Cost |
| < $91,000 (single or married filing separately) < $182,000 (married filing jointly) |
$170.10 per month $2,041.20 per year |
| $91,000 – $114,000 (single) $182,000 – $228,000 (married filing jointly) |
$238.10 per month $2,857.20 per year |
| $114,000 – $142,000 (single) $228,000 – $284,000 (married filing jointly) |
$340.20 per month $4,082.40 per year |
| $142,000 – $170,000 (single) $284,000 – $340,000 (married filing jointly) |
$442.30 per month $5,307.60 per year |
| $91,000 – $409,000 (married filing separately) $170,000 – $500,000 (single) $340,000- $750,000 (married filing jointly) |
$544.30 per month $6,531.60 per year |
| > $409,000 (married filing separately) > $500,000 (single) > $750,000 (married filing jointly) |
$578.30 per month $6,939.60 per year |
The majority of your health care needs will be met by Medicare Part B. After paying a $233 deductible for the year, your Part B benefits kick in. You will then pay 20% for most medically necessary services while Medicare pays the remaining 80%. The exception are certain preventive screening services which will be free to you — but only if your doctor accepts assignment.
2022 Medicare Part D Costs
Because Part D plans are run by private insurance companies, premiums and deductibles vary based on the plan you choose. However, please know that the federal government set a maximum deductible for Part D plans at $480 in 2022. Your deductible cannot be higher than this amount.
Anyone who signs up for a Part D prescription drug plan will also pay what is known as the Income-Related Monthly Adjustment Amount (IRMAA). This is above and beyond the plan’s monthly premium. Like the Part B costs, what you pay is determined by your income.
| Your 2020 Annual Income | 2022 Part D IRMAA Cost |
| < $91,000 (single or married filing separately) < $182,000 (married filing jointly) |
$0 per month |
| $91,000 – $114,000 (single) $182,000 – $228,000 (married filing jointly) |
$12.40 per month $148.80 per year |
| $114,000 – $142,000 (single) $228,000 – $284,000 (married filing jointly) |
$32.10 per month $385.20 per year |
| $142,000 – $170,000 (single) $284,000 – $340,000 (married filing jointly) |
$51.70 per month $620.40 per year |
| $91,000 – $409,000 (married filing separately) $170,000 – $500,000 (single) $340,000- $750,000 (married filing jointly) |
$71.30 per month $855.60 per year |
| > $409,000 (married filing separately) > $500,000 (single) > $750,000 (married filing jointly) |
$77.90 per month $934.80 per year |
What you pay for each medication will also vary based on your plan. This could be a coinsurance or a copayment. If a drug is not on your plan’s formulary (and your plan refuses to cover it even after you make an appeal), you might have to pay the full cost yourself.
References
2022 Medicare Parts A & B Premiums and Deductibles/2022 Medicare Part D Income-Related Monthly Adjustment Amounts. Centers for Medicare & Medicaid Services. https://www.cms.gov/newsroom/fact-sheets/2022-medicare-parts-b-premiums-and-deductibles2022-medicare-part-d-income-related-monthly-adjustment
Current Year: 2022
Subsequent Years: 2023
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