The year 2022 has begun. The United States of America has experienced its greatest economic contraction in history as a result of the COVID-19 pandemic.
As a result of the pandemic and the outbreak of the highly contagious Omicron variant – inflation is said to be above 6% in the United States of America. Furthermore, the cost-of-living adjustment is the highest it’s been for 40 years – sitting at 5.9%. However, Medicare costs have increased drastically. In addition to this Medicare Part B, premiums have increased by the largest amount in history – that is according to American Action Forum.
According to an article on CNBC entitled: “Here’s what to know about your 2022 Medicare costs”, written by Sarah O’Brien – cost adjustments can affect premiums, deductibles, and other cost-sharing aspects of Medicare.
In addition to this, according to Danielle Roberts, co-founder of insurance firm Boomer Benefits: “This year, it is especially important to be aware of the increasing costs of Medicare because it’s happening at a time where we are also experiencing inflation”.
Thus as the year begins, Medicare costs will also increase. According to CNBC, over 63 million citizens in the United States of America are beneficiaries of the Medicare program with most of them being 65 years or older.
What this means is a large proportion of the program’s beneficiaries rely on retirement social security benefits as well. Unfortunately, this means that the cost-of-living adjustment and the increase in social security benefits will largely be offset by an increase in Medicare and more specifically Medicare part B premiums. Let’s go into a few details you might need to know about the medicare scheme.
Medicare Part A
According to CNBC, most beneficiaries don’t pay any real premiums for Medicare part A – as they would have worked for a long enough period – this is 10 years or more and has paid sufficient payroll taxes. According to this article on CNBC, however, if this is not the case – Medicare Part A premiums can cost as much as $499. This has increased from $471 a month last year.
Medicare Part B
To continue, Medicare Part B premiums have increased a massive $21.60. The maximum Part B premium according to figures taken from CNBC is $170.10 up from $148.50 last year. This will offset most social security benefits this year quite substantially at a time when medical insurance and care are in much need as a result of the COVID-19 pandemic.
Lastly, according to CNBC – if a U.S. citizen does not have any medical coverage besides Medicare, they will be paying $1,556 for the first two months of hospital admission. This is up from $1,487 last year.
So to conclude, this year will see a massive increase in medical costs as a result of inflation caused by the COVID-19 pandemic has come at a very opportune time. Indeed, Medicare premiums have increased by a great amount leaving their 63 million beneficiaries most of whom are over 65 further cash strapped this year. Hopefully, the highly contagious variant of the COVID-19 virus will not continue to affect U.S. lives and the economy as much as the pandemic has over the last two years.