Medicare Part B Premiums Will Stay in Place in 2022 But Drop In 2023
The approximate $10 per month in cost savings from lower-than-expected 2022 Medicare Part B spending will not be used to lower 2022 Part B premiums and instead will be passed along to people with Medicare Part B coverage in the calculation of the 2023 Part B premium, according Jae Oh, author of Maximize Your Medicare.
Earlier this year, the Centers for Medicare & Medicaid Services (CMS) was instructed to reassess the 2022 Part B premium amount in response to a price reduction for Aduhelm™, a monoclonal antibody directed against amyloid for use in treating Alzheimer’s disease.
According to the CMS, the Part B standard monthly premium increased 14.55% from $148.50 in 2021 to $170.10 in 2022 driven in part by the statutory requirement to prepare for potential expenses, such as spending trends driven by COVID-19, and uncertain pricing and utilization of Aduhelm™.
Medicare beneficiaries were hoping that CMS would reduce the 2022 Part B premium by $10 per month after its assessment. “To some, this is going to be disappointing news, especially in the age where today you've got $5 a gallon for gasoline striking many people in a difficult time,” said Oh.
Generally, prescription drugs are covered under Medicare’s Part D program but some drugs that are administered in a healthcare setting, such as Aduhelm™, are covered under Medicare’s Part B program, according to Oh.
Oh said there may be a notable increase in Social Security benefits next year given the current rate of inflation. But it’s uncertain at this point how much Part B premiums will increase next year, he said. Of note, the law contains a hold-harmless provision that limits the dollar increase in the premium to the dollar increase in an individual’s Social Security benefit, according to the Center for Retirement Research at Boston College.
“We do not have all of the statistics yet, but in the coming months, we should see a clearer picture of how that will play out and have more headlines about the Medicare system,” said Oh.
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