Social Security Disability Insurance
We’re only a few months away from the end of 2021! There will be some changes to your Medicare premiums and Social Security benefits as a result of the Affordable Care Act. We’d want to have a look at the 2022 CMS upgrades that were just published.
COLA (cost-of-living adjustment)
Annual Cost of Living Adjustment (COLA) for Social Security benefits. Retirees’ monthly Social Security payouts will rise by 5.9 percent in 2022, according to the Social Security Administration. More than 64 million Americans will get an average benefit boost of $70.
For anybody earning more than $147,000 a year, Social Security taxes will now be levied on that amount. There is a $19,560 maximum for individuals who have not yet reached full retirement age, and $51,960 for those who have.
In 2022, Medicare Part A will be available.
The majority of Medicare beneficiaries receive premium-free Part A, thus most people will not notice a change in their Part A cost. If you’ve paid Medicare taxes for ten years, you’ll get this reward.
However, some people are still required to pay a Part A premium. Based on the number of quarters you have paid Medicare taxes, the amount of your bill is determined. You will pay $274 in 2022 if you have paid Medicare taxes for more than 30 quarters but less than 40 quarters. If you didn’t meet the 30-quarter threshold, you’d be responsible for the $499 Part A premium.
In 2022, the Part A deductible will likewise rise. The deductible for 2021 was $1484. By 2022, that amount is expected to rise to $1556. Deductibles are calculated per benefit period, not per calendar year, therefore it is crucial to keep this in mind. If you’ve been hospitalized many times in a year, you may have to pay this deductible again.
In 2022, Medicare Part B will be implemented.
Nobody in Medicare receives premium-free Part B, unlike under the original Medicare plan (Part A). At $148.50, the normal premium for this year. It will rise to $170.10 in 2022.
The income limitations have also been raised. High-earning individuals and couples may have to pay additional premiums, however, most people pay the normal rate. Standard premiums apply to individuals making $91,000 or less, and to married couples making $182,000 or fewer, respectively.
You’ll pay $238.10 a month if you’ve hit one of those restrictions. The monthly premium for persons earning $142,000/$284,000 will rise to $340.20. The monthly payment now stands at $578.30, which is an increase from the previous figure of $578.20.
Visit https://medicarequick.com/2022Costs for a complete overview of 2022 Medicare costs and premiums.
There will be an increase in the deductible for Part B from $203 in 2021 to $233 by 2022. This deductible, unlike the Part A deductible, is only applicable once a year.
In 2022, Medicare Part C
For Part C plans in 2022, there will be no universal adjustments. These plans are supplied by private insurance firms, which means that their premiums and deductibles will differ. It is during the Annual Election Period (AEP) that current Part C plan holders can find out what their benefits will be for the future year.
In 2022, Medicare Part D It’s important to know your Medicare number.
These plans, like Part C plans, do not have a fixed increase; rather, they are based on the insurance company. Since this is the maximum deductible that any plan can have, most plans use the standard deductible. From $445 to $480, the deductible for Part D is increasing.
Deductibles and catastrophic thresholds are increasing together. Before catastrophic coverage kicks in, this is how much a beneficiary would have to pay out-of-pocket before the majority of prescription costs are covered by the plan. Before you get to this level of coverage, you’ll have to pass through a “donut hole.”
In 2022, the catastrophic threshold rises from $6550 to $7050. These are hefty increases that could put financial hardship on people who need more expensive prescriptions.
Every year, you should meet with your agent to discuss your current intentions. Opportunities to save money can counterbalance the rising costs of components of Medicare that are beyond our control. If you have any questions, please give us a call or send us an email here.