Posted on June 22, 2022 by Larry Johnson
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Posted on June 22, 2022 by Larry Johnson
Medicare Part B premium reductions are a possibility. Part B premium savings are a reality. Call our licensed, experienced agents today at (800) 950-0608 to find Medicare plans in your area offering the $144 Give Back benefit.
Earlier this month, we featured a Medicare news article on what could be a major reform for the Medicare system. Two members of the House of Representatives introduced a bipartisan bill in April that would allow beneficiaries to maintain contributions to or open new HSA accounts. We’ve also learned that Medicare may potentially be open to reducing the amount you pay for your Medicare Part B premium.
This bit of Medicare news could prove to be especially helpful to seniors who live on a very low monthly income. Let’s take a deeper look at whether or not Medicare is actually going to reduce your Medicare Part B premium, and if so, whether it could take effect this year.
It’s normal for premiums to fluctuate now and then. However, the most recent rise in cost for Medicare Part B premiums can be attributed to Medicare tackling the cost of a relatively new Alzheimer’s medication. Medicare Part B premium costs jumped from $148.50 in 2021 to $170.10 this year, and around half of that jump came from the potential cost of covering Aduhelm.
The Centers for Medicare and Medicaid Services (CMS) are required by law to set the Medicare Part B premium at 25 percent of estimated costs that will be incurred by Part B that year. For 2022, CMS had to consider the potential of covering Aduhelm on a wide scale. These factors resulted in a higher Medicare Part B premium for this year.
Earlier this year, CMS determined that it wouldn’t cover Aduhelm on a broad scale. Instead, it would only be covering the costs of the treatment for certain patients who have been approved for clinical trials. On the heels of CMS’ announcement, Biogen, the creators of Aduhelm, announced that they would be cutting the cost of the drug in half from $56,000 per year to $28,200.
These factors played a huge role in causing CMS to rethink this year’s Medicare Part B premium increase. While such major mid-season changes to Medicare premiums are considered rare, the possibility that you could see your Medicare premiums decrease this year are relatively high.
The mid-season change of heart by CMS has beneficiaries asking one question: “Are Medicare premiums going down?” All signs for a Medicare premium reduction currently look positive. However, CMS has not made a final decision as to whether or not they’ll actually reduce the Medicare Part B premium for 2022.
If CMS does decide to go through with a reduction in Medicare premiums, it likely won’t take effect this year. Other Medicare news sources indicate that if a Medicare Part B premium decrease does happen, it won’t take effect until 2023 at the earliest.
So, while it’s not likely that you’ll see a decrease in your Medicare premiums this year, it’s a good idea to keep an eye on Medicare news as developments unfold. You may see positive news in the future regarding a Medicare premium reduction for next year.
Though CMS has not officially reduced the cost of Medicare premiums, there are still ways you can save on the cost of Part B. Sometimes, you can find Medicare Advantage plans with Part B premium reduction benefits.
In some cases, Medicare Advantage plans offer what is known as the $144 Medicare Give Back Benefit. This Medicare premium reduction shows up in one of two ways:
This benefit isn’t available to all Medicare Advantage plan beneficiaries, however. You have to meet certain requirements in order to be eligible to receive the Give Back benefit, such as:
While it seems like Medicare reforms are lifetimes away, they’re actually closer to happening than you think. With the re-introduction of the Health Savings for Seniors Act and the possibility of mid-season Medicare premium reductions, signs indicate that policymakers are at least open to rethinking many of Medicare’s more draconian rules. New Medicare news stories develop daily regarding changes for the better that could be coming to the Medicare system.
In the meantime, it’s still possible to save money on Medicare premiums and medical costs. Use our free comparison tool to shop for available Medicare plans in your area that meet your budget, or reach out to one of our experienced, licensed agents today. It’s quick, easy, and can save you plenty of money in the long run!
Larry is a content writer with several years of experience in creating informative content for a variety of industries on topics that matter. He is a 2009 graduate of the University of North Carolina School of the Arts.