CMS Releases Costs for Medicare Advantage and Part D in 2022

The Centers for Medicare & Medicaid Services (CMS) has released the average rates for Medicare Advantage and Part D plans in 2022. Here’s what it means for you in the run-up to AEP!

The Centers for Medicare & Medicaid Services (CMS) has issued premium estimates for Medicare Advantage (Part C) and Medicare Part D prescription plans in 2022, as well as other key financial data including deductibles. CMS has predicted reduced average rates for Medicare Advantage plans for the second year in a row, continuing a trend that began some years ago. CMS also reported a substantial increase in enrollment, plan options, and incentives compared to the previous year!

We’ll break down each piece of news for you, as well as what you may anticipate to pay in 2022.

Medicare Advantage (Part C)

The average Medicare Advantage premium is expected to fall by 10.5 percent in 2022, from $21.22 per month in 2021 to $19. With average rates below $20, Part C plans are an appealing alternative when looking for a Medicare coverage. By going to the CMS.gov Prescription Drug Coverage – General Information page, downloading the 2022 landscape files for MA (Medicare Advantage), PDP (Part D prescription), and SNP (Special Needs Plans), and finding your state in the files, you can find in-depth plan information — such as deductibles, MOOP (Maximum Out of Pocket) limits, and more.

Or you can visit  https://medinsco.com/ and by entering your name, zip code and a few additional details you can find and compare the best plans for you and even self-enroll.

The average Medicare Advantage premium is anticipated to reach $19 in 2022, with enrollment levels expected to break past records.

Also worth noting is that, according to CMS, Medicare Advantage enrollment will surpass the previous high of 26.9 million beneficiaries set last year, with 29.5 million enrollees. In addition to the extra benefits that most Part C plans provide, 25% of plans will include supplemental coverage for those with chronic diseases (up from 19% in 2021). In addition, those who qualify for a Dual Eligible Special Needs Plan (D-SNP) will have 295 options, up from 256 in 2021.

Part D of Medicare:

In 2022, the average premium for Medicare Part D plans will rise somewhat, as it did last year. It is expected to rise 4.9 percent to $33, up from $31.47 last year. But don’t be too concerned. The average monthly Part D premium in 2019 was $30, the lowest in the prior seven years. You can obtain Part D plan information on the CMS.gov Prescription Drug coverage plan website by downloading the 2022 PDP landscape file, just like you can with Medicare Advantage.

 

While typical Medicare Part D rates are expected to rise to $33, the Part D Senior Savings Model will continue to be tested in the hopes of expanding if the tests are successful.

CMS intends to continue testing the Part D Senior Savings Model in more than 2,100 plans to improve beneficiaries’ access to and affordability of insulin. For 2022, there will be 500 new Medicare Advantage and Part D plans, as well as two new insulin pharmaceutical producers joining the program. The goal is that this initiative, along with a series of executive actions aimed at lowering medication costs and protecting seniors and beneficiaries from price gouging, would keep drug costs low for seniors and beneficiaries.

How Does This Affect Your Plans?

With all of this new information, the key question seems to be: what does it mean to you? It may mean that if you’re registered in a Medicare Advantage plan, your premiums will go down, or that if you’re enrolled in a Medicare Part D plan, your premiums would go up somewhat, or it could mean nothing at all. It’s crucial to remember that these are simply averages; individual plans can establish their own prices, with some having higher premiums and others having lower or even no premiums! Your individual policies will have their own set of premiums and expenses.

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