From Retirement Now Newsletter November 18th, 2021
We are very quickly approaching the December 7th deadline to make a decision about your Medicare coverage for the upcoming year 2022.
So that makes this a good time to go over what Medicare costs will be for next year.
I came across a good article on this titled “What Retirees Will Pay for Medicare in 2022”
First, the Medicare Part B premium is going up from $148.50 to $170.10. That’s the new base premium amount. However, if you earn income over certain thresholds you may pay more for your Part B premium.
Second, the average premium for a Medicare Part D drug plan will be about $33 a month. The threshold to reach the coverage gap (also called the Donut Hole) is also going up to $4,430 (from $4,130 in 2021). When you’re in the coverage gap you won’t pay more than 25% of the expenses for your plan’s covered medications. Once out of pocket spending reaches $7,050 (this includes what drug manufacturers paid on your behalf during the donut hole) you’ll reach catastrophic coverage where Medicare pick ups most of the cost.
Third, Medicare still doesn’t cover certain expenses, like dental, vision or hearing aids. Even when adding a Medicare Supplement to your coverage those benefits are not covered. But a Medicare Supplement can fill in a lot of gaps that Original Medicare doesn’t cover. The price of supplements can vary based on your age and state you live in.
Medicare Advantage plans offer an alternative. Some of them will cover things like dental, vision or hearing aids. The main drawbacks with Advantage Plans is they may have higher deductibles, co-pays and you have to be careful about finding doctors in their network.
Remember, Medicare is just one important part of your retirement plan. Need help with your retirement plan. Just click here to have a brief phone chat with me.