The federal government on Friday announced a hike in Part B premiums, owing to the pandemic, as well as the high cost of a new Alzheimer’s drug which is in question. The Medicare plan-B aims at covering physician services, outpatient hospital services, certain home health services, medical equipment, and certain other medical and health services not covered by Medicare Part A, including medications given in doctors’ offices.
It would take monthly payments up from $148.50 to $170.10 in 2022, for those falling in the lowest income bracket. This will take the COLA rise to 5.9% in their monthly payments, making it the largest increment in 30 years.
“This significant COLA increase will more than cover the increase in the Medicare Part B monthly premium,” Centers for Medicare and Medicaid Services said.
“Most people with Medicare will see a significant net increase in Social Security benefits. For example, a retired worker who currently receives $1,565 per month from Social Security can expect to receive a net increase of $70.40 more per month after the Medicare Part B premium is deducted.” The CMS added.
As per Policy expert and analyst, Mary Johnson, “will consume the entire annual cost of living adjustment (COLA) of Social Security recipients with the very lowest benefits, of about $365 per month,” The analyst who is a part of the advocacy group The Senior Citizens League also added, “Social Security recipients with higher benefits should be able to cover the $21.60 per month increase, but they may not wind up with as much leftover as they were counting on.”
One of the reasons being cited for the drastic increase is the capping of the increase in 2021 Part B Premium by the Democrats.