The Centers for Medicare & Medicaid Services (CMS) in November announced the 2022 premiums for Medicare Part B.
For most Medicare beneficiaries, premiums, deductibles and surcharges will increase. Premiums will rise to $170.10 per month, an increase of $21.60, while Medicare Part B deductibles will increase by $30 to $233. Retirees will also pay a different premium amount in 2022 if they fall into a different income-related category. This change happens once individual filers reach $91,001, or a joint-filer reaches $182,001, for income earned in 2020.
The Social Security Administration uses the income reported two years ago to determine a Part B beneficiary’s premium. Thus, the income reported on a beneficiary’s 2020 tax return is used to determine whether the beneficiary must pay a higher monthly Part B premium in 2022. If a beneficiary’s income decreased significantly in the past two years, he/she may request that information from more recent years be used to calculate the premium.
Note: For Medicare beneficiaries whose Medicare Part B premiums automatically are deducted from their Social Security benefits, the Social Security Cost of Living Adjustment (COLA) must be large enough to cover the premium cost. Since some beneficiaries already pay lower-than-standard premiums because of this rule, the 5.9 percent increase in the 2022 cost-of-living adjustment will just cover the premium increase of $21.60 per month, and, as a result, beneficiaries to whom this applies will continue to pay a lower premium.
For those members receiving post-retirement medical benefits paid for by the state of New Jersey, the standard Medicare Part B premium is reimbursed in the member’s pension check. Any income-related adjustment new enrollees, a member or his/her dependent pays is reimbursed at the end of the year in which the adjustment is paid, only after the proper paperwork is filed with the NJ Division of Pensions and Benefits. Notice on how to file for any income-related adjustment reimbursement will be sent to retirees, as well as posted on the NJ Division of Pensions and Benefits website, by early February.
If you have questions about your Medicare Part B premium, call 800-MEDICARE (800-633-4227.) Any questions regarding the reimbursement process should be directed to the NJ Division of Pensions and Benefits at 609-292-7524.