Managed by the Social Security Administration, the Medicare program is a vital social safety net for America’s seniors, covering more than 62 million people, mostly age 65 and older. However, it doesn’t come without cost. Each recipient of Medicare health care coverage pays a monthly premium for health care coverage.

For 2022, Medicare premiums have dramatically increased. It is one of the largest increases in the history of the Medicare program. While much of this expense is expected to be offset by a 5.9% bump in Social Security benefits payments, you should become familiar with what to expect for your Medicare premiums in 2022.

2022 Medicare Rates

Beneficiaries who file individual tax returns with modified adjusted gross incomeBeneficiaries who file joint tax returns with modified adjusted gross incomeIncome-related monthly adjustment amount
Less than or equal to $91,000Less than or equal to $182,000$0.00
Greater than $91,000 and less than or equal to $114,000Greater than $182,000 and less than or equal to $228,000$68.00
Greater than $114,000 and less than or equal to $142,000Greater than $228,000 and less than or equal to $284,000$170.10
Greater than $142,000 and less than or equal to $170,000Greater than $284,000 and less than or equal to $340,000$272.20
Greater than $170,000 and less than $500,000Greater than $340,000 and less than $750,000$374.20
Greater than or equal to $500,000Greater than or equal to $750,000$408.20
Beneficiaries who file individual tax returns with modified adjusted gross incomeTotal monthly premium amount
Less than or equal to $91,000$170.10
Greater than $91,000 and less than or equal to $114,000$238.10
Greater than $114,000 and less than or equal to $142,000$340.20
Greater than $142,000 and less than or equal to $170,000$442.30
Greater than $170,000 and less than $500,000$544.30
Greater than or equal to $500,000$578.30
Beneficiaries who are married and lived with their spouses at any time during the year, but who file separate tax returns from their spouses, with modified adjusted gross incomeIncome-related monthly adjustment amountTotal monthly premium amount
Less than or equal to $91,000$0.00$170.10
Greater than $91,000 and less than $409,000$374.20$544.30
Greater than or equal to $409,000$408.20$578.30

Part A Deductible and Coinsurance Amounts for Calendar Years 2021 and 2022


20212022
Inpatient hospital deductible$1,484$1,556
Daily coinsurance for 61st-90th Day$371.00$389.00
Daily coinsurance for lifetime reserve days$742.00$778.00
Skilled Nursing Facility coinsurance$185.50$194.50
Beneficiaries who file individual tax returns with modified adjusted gross incomeBeneficiaries who file joint tax returns with modified adjusted gross incomeIncome-related monthly adjustment amount
Less than or equal to $91,000Less than or equal to $182,000$0.00
Greater than $91,000 and less than or equal to $114,000Greater than $182,000 and less than or equal to $228,000$12.40
Greater than $114,000 and less than or equal to $142,000Greater than $228,000 and less than or equal to $284,000$32.10
Greater than $142,000 and less than or equal to $170,000Greater than $284,000 and less than or equal to $340,000$51.70
Greater than $170,000 and less than $500,000Greater than $340,000 and less than $750,000$71.30
Greater than or equal to $500,000Greater than or equal to $750,000$77.90
Beneficiaries who are married and lived with their spouses at any time during the year, but file separate tax returns from their spouses, with modified adjusted gross incomeIncome-related monthly adjustment amount
Less than or equal to $91,000$0.00
Greater than $91,000 and less than $409,00071.30
Greater than or equal to $409,00077.90

What Are Medicare Premiums?

Those who receive Medicare health care benefits pay monthly premiums associated with some elements of the coverage they have. For example, Medicare Part A covers inpatient hospital, hospice, skilled nursing facility, inpatient rehabilitation, and some home health care services, and only around 1% of Medicare recipients have any premium associated with this portion of their Medicare coverage. This is largely because most Medicare recipients have at least 40 quarters of Medicare-covered employment.

For those who have at least 30 quarters of Medicare coverage or are married to someone who has at least 30 quarters, they may access Part A Medicare coverage at a lower monthly premium, which will be $274 in 2022 – a $15 increase from 2021. Some uninsured elderly adults who have less than 30 quarters of coverage and other people with disabilities who have exhausted all other compensation also may access Part A coverage, but they are required to pay the full premium – which will be $499 per month in 2022, a $28 increase from 2021.

Medicare Part B, which typically covers physician services, outpatient hospital services, medical equipment, certain home health services, and other medical and health services not covered by Medicare Part A – including medications delivered in a doctor’s office.

Medicare Part B premiums have been based on income since 2007. For example, those who earn $500,000 or more a year individually, plus joint incomes of $750,000 or more each year, will pay $578.30 a month for coverage in 2022.

The standard monthly premium for Medicare Part B beneficiaries who earn less than $91,000 per year will be $170.10 for 2022, an increase of $21.60 from $148.50 in 2021. The annual deductible for all Medicare Part B beneficiaries will be $233 in 2022, an increase of $30 from the annual deductible of $203 in 2021.

A beneficiary’s Medicare Part D monthly premium is based on the individual’s income as well. These income-related premiums affect roughly 8% of those who are enrolled in Medicare Part D coverage, which offers several options for prescription drug coverage. These individuals pay an income-related monthly adjustment amount in addition to the Part D premium for the plan of their choice.

Part D premiums vary by plan, and approximately two-thirds of those premiums are paid directly to the plan, while the remaining third is deducted from Social Security benefits. Part D income-related monthly adjustment amounts also are deducted from Social Security benefit compensation.

What Does “Medicare Deductible” Mean?

The Medicare deductible is the amount the patient must pay for covered health care services before insurance benefits kick in. The Medicare Part A inpatient hospital deductible for beneficiaries will increase in 2022 to $1,556, up $72 from $1,484 in 2021.

The Part A inpatient hospital deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care during any benefit period.

What Is Medicare Coinsurance?

Medicare coinsurance is the share of medical costs the patient pays after your deductibles are met. In 2022, Medicare beneficiaries must pay a coinsurance amount of $389 per day for the 61st through 90th day of a hospitalization (up from $371 in 2021) within a benefit period and $778 per day for lifetime reserve days, which is up from $742 in 2021.

For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 of extended care services during a benefit period will rise to $194.50 in 2022 from 2021’s $185.50.

Why Did Medicare Costs Increase?

According to Medicare administrators, much of the increase can be tied directly to pharmaceutical company Biogen’s new drug to combat Alzheimer’s disease – Aduhelm.

Aduhelm currently costs around $56,000 per year, and may potentially be covered by Medicare Part B, which drives up premiums as Medicare builds up its reserves for potentially covering the drug. The drug gained approval from the U.S. Food and Drug Administration in June, and Medicare has begun a formal process to determine whether it should cover Aduhelm. While a final decision isn't likely until at least the spring of 2022, coverage decisions currently are made on a case-by-case basis.

Other factors contributing to the historic Medicare increase include the natural growth of the Medicare program and adjustments the U.S. Congress made in 2020 as the coronavirus pandemic took hold. In general, rising health care prices and more people accessing Medicare benefits across the healthcare system have catalyzed higher premiums each year, which have occurred simultaneously with increases in the level of care provided under Medicare.

Medicare Help Is Available

Medicare covers more than 60 million people in America, including Americans who are age 65 and older, along with people who are disabled or have serious kidney disease. Overall program spending for Medicare is approaching $1 trillion per year.

Medicare is a major driver of the U.S. health care economy and a vital benefit for many Americans. Recipients of Medicare benefits should review the charts and information presented here to make sure they fully understand how impending increases to Medicare premium amounts will affect their budgets.

If you are concerned about choosing the right Medicare plan for your medical needs, reach out to a Benefits Advisor today for help finding a cost-effective Medicare plan.