Medicare Part B premiums will rise by the highest level in the program’s history next year, with most Part B users paying 14.5% more than they did in 2021.

The Standard Part B 2022 premium of $170.10 is up from $148.50 in 2021. This is the monthly amount paid by beneficiaries who had a modified gross adjusted income of $91,000 or less on their 2020 individual tax return or $182,000 or less on a 2020 joint return.

The increase dwarfs last year’s 2.7% standard rate hike. A Centers for Medicare and Medicaid Services (CMS) fact sheet offers three main reasons for the increase: Rising health care prices and utilization as patients return to provider offices for routine care while COVID-related expenses persist, a $3-per-month increase brought about by a legislative fix that lessened last year’s increase during the COVID-19 pandemic, and uncertainty regarding costs and coverage of Aduhelm, a new Alzheimer’s medication. 

Those who earned more pay an adjusted rate for Part B coverage by adding an Income Related Monthly Adjustment Amount (IRMAA) to the standard premium. The breakdown of those rates, per Medicare.gov, is as follows (Note: as with the standard premium levels, these income levels have risen slightly since 2020):

• Those with income from $91,001 to $114,000 on an individual return or from $182,001 to $228,000 on a joint return will pay $238.10 per month, up from $207.90 in this bracket in 2021.
• Those with income from $114,001 to $142,000 on an individual return or from $228,001 to $284,000 on a joint return will pay $340.20 per month, up from $297.00 in this bracket in 2021.
• Those with income from $142,001 to $170,000 on an individual return or from $284,001 to $340,000 on a joint return will pay $442.30 per month, up from $386.10 in this bracket in 2021.
• Those with income from $170,001 to $500,000 on an individual return, or $91,001 to $408,999 when married but filing a separate tax return, or from $340,001 to $750,000 on a joint return will pay $544.30 per month, up from $475.20 in this bracket in 2021.
• Those with income above $500,000 on an individual return, or above $408,999 when married but filing a separate tax return, or above $750,000 on a joint return will pay $578.30 per month, up from $504.90 in this bracket in 2021.

[MOAA’s TRICARE GUIDE: Medicare and TRICARE at 65 and Beyond]

Income Adjustment

If your income figures from 2020 don’t reflect your current financial situation, especially in the event of a retirement, a divorce, or other life-changing events, you may qualify for a lower rate. You can file Form SSA-44, Medicare Income-Related Monthly Adjustment Amount – Life Changing Event, or visit your local Social Security office to request an adjustment.

Qualifying events include:

• Marriage, divorce/annulment, or death of a spouse.
• Work stoppage or reduction.
• Loss of income-producing property.
• Loss of pension income.
• Employer settlement payment.

For more information, call the Social Security Administration (SSA) at 1-800-772-1213.

MOAA Premium and Life members can email questions about Medicare or other benefits programs to our benefits counselors. More information on Medicare is available at this link.