SOCIAL SECURITY GIVETH, MEDICARE TAKETH AWAY
Part B’s Shocking New Prices
In October 2021, the U.S. Social Security Administration (SSA) announced the largest cost-of-living adjustment (COLA) to Social Security since 1983. This was welcome news for enrollees and elder care experts, who saw the 5.9% jump in distribution amounts for 2022 as a rightful increase to what enrollees are owed.
But Medicare just damped those spirits.
In November 2021, the Centers for Medicare and Medicaid Services (CMS) announced its updated rates for 2022, and it saw a similar spike — only, it wasn’t good news for enrollees. CMS announced an increase from Medicare Part B monthly premiums from $148.50 to $170.10, and its deductibles for the calendar year jumped from $203 to $233 for 2022. While these totals may not seem pricey, as older adults know, even just $30 per month can make a difference to seniors living on limited budgets. Of course, CMS has its reasons for the spike. For starters, health care costs have increased during the pandemic, and because the premium increase for 2021 was very low — just an additional $3.90 per month — Congress instructed CMS to begin recuperating those costs in 2022. The increase was low in 2021 due to the pandemic as well. However, there is another, perhaps unexpected, reason CMS is making this leap. With the U.S. Food and Drug Administration’s (FDA) approval of Aduhelm for treatment of Alzheimer’s, CMS is preparing to cover the drug and other Alzheimer’s treatments that may be approved by the FDA in coming years. While Aduhelm is currently not covered by Medicare — and is still heavily debated for its effectiveness — CMS told AARP this fall that it would like to be prepared should coverage happen.
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It’s worth noting the silver lining to this Medicare Part B premium and deductible jump. The COLA increase should cover the cost of the spike and leave some money left over for Social
Security recipients. That may be a relief, but it does lessen the impact of the COLA. If you have questions about how these spikes will impact your Medicare needs, please contact our team today.
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