As you near your 65th birthday, it’s time to start thinking about Medicare. Medicare is the U.S. government health insurance program for people age 65 and older, as well as for some younger people with disabilities.
There are several parts to Medicare, and in 2022, there will be some important changes that could affect your coverage. Here’s what you need to know as open enrollment approaches.
Understanding Medicare and its Different Plans
Medicare is a health insurance program administered by the U.S. government. It’s designed to provide health coverage for people age 65 and older, as well as for some younger people with disabilities.
There are four parts to Medicare: Part A, Part B, Part C, and Part D.
- Part A covers inpatient hospital care, skilled nursing facility care, hospice care, and home health care.
- Part B covers outpatient services, including doctor’s visits, preventive services, durable medical equipment, and some home health care.
- Part C is also known as Medicare Advantage. It’s a way to get your Part A and Part B benefits through a private insurance company.
- Part D is the prescription drug benefit. It covers the cost of prescription drugs.
Changes to Medicare in 2022
Several changes are coming to Medicare in 2022. The standard Part B premium and deductible will both increase. The Part B premium will go up by $3.90, and the Part B deductible will go up by $5.00.
Additionally, the income thresholds for the Part B premium surcharge and the Part D premium subsidy will both increase in 2022. The Part B premium surcharge is a monthly surcharge that’s added to your Part B premium if your income is above a certain threshold. For 2021, the threshold is $88,000 for an individual and $176,000 for a couple. In 2022, the threshold will increase to $89,000 for an individual and $178,000 for a couple.
The Part D premium subsidy is a subsidy that helps pay for the cost of your Part D premium if your income is below a certain threshold. For 2021, the threshold is $87,000 for an individual and $174,000 for a couple. In 2022, the threshold will increase to $88,000 for an individual and $176,000 for a couple.
How to Sign Up For Medicare
If you’re already receiving Social Security benefits when you turn 65, you’ll be automatically enrolled in Medicare Part A and Part B. If you’re not receiving Social Security benefits, you can sign up for Medicare online at www.medicare.gov.
You can also sign up for Medicare by calling 1-800-MEDICARE (1-800-633-4227). TTY users can call 1-877-486-2048.
If you’re not receiving Social Security benefits, you’ll need to sign up for Medicare during your initial enrollment period. Your initial enrollment period is the seven-month period that includes the month you turn 65, as well as the three months before and after that month.
What To Do if You’re Already on Medicare
If you’re already on Medicare and you want to make changes to your coverage, you can do so during open enrollment. Open enrollment is the annual period when you can make changes to your Medicare coverage. For 2022, open enrollment will run from October 15 to December 7.
During open enrollment, you can switch from Original Medicare (Parts A and B) to a Medicare Advantage Plan (Part C). You can also switch from a Medicare Advantage Plan back to Original Medicare. If you have a Medicare Advantage Plan that includes prescription drug coverage (most do), you can switch to a different Medicare Advantage Plan or a stand-alone Part D prescription drug plan.
You can also enroll in, or make changes to, a stand-alone Part D prescription drug plan during open enrollment.
How to Choose the Best Medicare Plan For You
There are a few things to consider when choosing the best Medicare plan for you. First, think about what kind of coverage you need. Do you need coverage for prescription drugs? Are you looking for a plan with low premiums and out-of-pocket costs?
It’s also important to think about whether you have any preferred doctors or pharmacies. If you do, make sure that they’re included in any plan you’re considering.
Finally, compare plans to find one that fits your needs and budget. You can use the Plan Finder tool on www.medicare.gov to compare plans side by side.
Choosing the best Medicare plan is an important decision, but it doesn’t have to be a difficult one. By taking the time to understand your options and compare plans, you can find a plan that’s right for you.
Part D Late Enrollment Penalty
If you don’t enroll in a Part D prescription drug plan when you’re first eligible, you may have to pay a late enrollment penalty. The late enrollment penalty is a permanent increase in your Part D premium.
The amount of the late enrollment penalty depends on how long you delay enrolling in a Part D plan. For each month that you delay enrolling, the premium increase is 1% of the national base beneficiary premium (which is $33.06 in 2021).
So, if you delay enrolling for 12 months, your premium will increase by 12%. If you delay enrolling for 24 months, your premium will increase by 24%.
The late enrollment penalty is in addition to your Part D premium. It’s important to note that the late enrollment penalty can’t be waived, even if you have a good reason for not enrolling in a Part D plan when you were first eligible.
There are two ways to avoid the Part D late enrollment penalty. First, you can enroll in a Part D prescription drug plan during your initial enrollment period. Your initial enrollment period is the seven-month period that includes the month you turn 65, as well as the three months before and after that month.