As we prepare for the Annual Enrollment Period, we look ahead to 2022 to see what changes we can expect. It’s always interesting for me to write these updates as so much of it is speculation about what The Centers for Medicare and Medicaid Services (CMS) and the insurance companies will reveal in October and November. Here’s what we know now:
Part B and Social Security
Social security is expected to increase payments 5.5% to 6.2% next year, considerably more than the 1.3% increase this year. That amount is based on higher inflation we experienced in 2021. This escalation will jump Part B premiums. By how much, I don’t know, and I didn’t find any speculation about it. I’m confident it will be more than the $4 hike we experienced this year. We can take some comfort in that CMS cannot increase Part B premiums to the point where it decreases a person’s social security check from the previous year. The Part B deductible has been projected to go up from $202 to $212.
Part D
The national average price of a prescription drug plan in 2022 will be $33.37/month, nearly $2 higher than this year. The Late Enrollment Penalty (LEP), for those who did not enroll in a Part D plan when first eligible, will be $0.33/month for each month without drug coverage.
Medicare Advantage
CMS strengthened Medicare advantage plans by increasing how much they are paid by 5.59%, thereby boosting their projected revenues by 4.08%. That’s good news for Medicare advantage recipients.
Expect to see more telehealth services, as, according to surveys, 91% of insureds had favorable experiences using it the past two years. Telehealth visits to primary care doctors, cardiologists, dermatologists, gynecologists, endocrinologists, and phycologists, will expand. Treatments for mental health are becoming increasingly important as 46% of older citizens report being stressed, and 23% say they are lonely and sad. Telehealth looks to be a more efficient way of reaching those reluctant to have an office visit.
Advantage plans can no longer refuse to accept those with End-Stage Renal Disease (ESRD). That is significant, as the cost for an ESRD patient in 2016 was $67,116/ year, versus the average cost of $10,182 annually for other Medicare beneficiaries.
Dental Coverage in Medicare
While Medicare advantage plans often cover preventative services for dental, vision and hearing, original Medicare has never covered them. Democrats in Congress recently introduced a bill that would cover basic preventative services for dental, vision and hearing in original Medicare. Much work needs to be done determining how much CMS will pay for services, and how to raise funds for the projected $358 billion over ten years the program is expected to cost. Republicans like the idea but not the cost, and the American Dental Association has reservation about this legislation. It will be interesting to see if the bill goes anywhere.
We’ll know much more about the Medicare advantage and prescription drug plans on October 1st. CMS will release final numbers for Parts A and B in October and November.
