The Centers for Medicare & Medicaid Services (CMS) recently released the average prices for Medicare Advantage and Medicare Part D premiums for 2022, along with some projections for enrollment in the next year. Costs for Medicare Advantage have gone down and for Part D have gone up.
Medicare Advantage Premiums
Medicare Advantage premiums in 2022 will average $19 per month, which is lower than the average price of $21 in 2021.
Medicare Part D Premiums
The 2022 Medicare Part D premium will average $33 per month, which is slightly higher than the average price of $31.47 in 2021.
Related Post: Do Medicare Supplements Provide Prescription Drug Coverage?
Medicare Advantage Costs to Expect
Generally, the costs tied to Medicare Advantage plans include monthly premiums, the deductible, copayments, and coinsurance. Each time you visit your doctor or the emergency room, you can expect to pay 20% of the Medicare-approved amount for the covered service as copayment.
Medicare Advantage plans cover the same services, tests, and items as Original Medicare (Part A and Part B). These plans are offered by private health insurance companies, which are compensated by Medicare for handling your coverage. Medicare Advantage plans can also offer additional benefits packages such as for dental, vision, and hearing care or for prescription drug coverage. Many also offer perks including fitness club memberships and access to care over the phone.
According to the news release from CMS, enrollment in Medicare Advantage plans is projected to be around 29.5 million people as compared to 26.9 million enrolled in a Medicare Advantage plan in 2021.
Medicare Part D Costs to Expect
For your prescription drug plan, you will need to pay monthly premiums, a deductible, and copayments for each prescription.
If your income was higher than the initial tax bracket used by Medicare, you will owe Medicare a Part D Income Related Monthly Adjustment Amount (IRMAA) which you pay directly to Medicare. You still pay your normal plan premium to your plan, but this is in addition.
Medicare Part D prescription drug plans cover at least two drugs in each of the six most commonly prescribed categories of drugs: anticancer, anticonvulsants, antidepressant, antipsychotic, antiretroviral, and immunosuppressant. You pay a copayment for each covered drug when you fill your prescription at the pharmacy. Costs will vary between plans, but you will generally pay the least for preferred generic drugs, a middle amount for brand name and non-preferred drugs, and the most for specialty drugs.
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