Major Hike In Medicare Part B Premiums Announced For 2022

The Centers for Medicare and Medicaid Services announced that the cost of Part B premiums will increase by 14.5% in 2022. It is the most significant increase since 2016. CMS blamed the increase on the coronavirus pandemic and an expensive new Alzheimer's drug that was recently approved by the Food and Drug Administration.

The agency said the standard premium will rise by $21.60, from $148.50 a month to $170.10. In addition, the deductible for Part B will increase by 14.8% to $233.

Officials downplayed the increase, saying that the 5.9% cost of living increase to social security payments will cover the higher price of the premiums.

"This significant COLA increase will more than cover the increase in the Medicare Part B monthly premium," CMS said. "Most people with Medicare will see a significant net increase in Social Security benefits. For example, a retired worker who currently receives $1,565 per month from Social Security can expect to receive a net increase of $70.40 more per month after the Medicare Part B premium is deducted."

The Senior Citizens League said the increased premiums could hurt many people who are on a fixed income.

It "will consume the entire annual cost of living adjustment (COLA) of Social Security recipients with the very lowest benefits, of about $365 per month," said Mary Johnson, a Social Security and Medicare policy analyst for The Senior Citizens League, an advocacy group, according to CNN. "Social Security recipients with higher benefits should be able to cover the $21.60 per month increase, but they may not wind up with as much leftover as they were counting on."