Medicare premiums to rise significantly in 2022

Medicare members’ monthly payments for physician and outpatient services will increase by nearly 15% in 2022, the Centers for Medicare and Medicaid Services said in a news release on Friday.

The agency attributed the surge in health care costs fueled by COVID-19-related treatments to lawmakers to cut insurance premiums in 2021 during the pandemic and the possibility of getting coverage for high-cost drugs like Biogen’s Aduhelm.

The standard monthly premium will rise to $ 170.10 in 2022, up 14.5% from $ 148.50 this year. The annual deductible will grow by $ 233, up 14.7% from $ 203 in 2021. Applicants will receive a 5.9% annual cost of living adjustment from their Social Security benefits, which will more than cover the increase in Medicare Part B monthly premiums, the agency said. CMS said this was the largest increase in the cost of living in 30 years.

Medicare premiums for hospital inpatient care will also rise in 2022, although CMS notes that about 99% of recipients do not pay premiums for these services. However, those who bear the costs will pay $ 1,556 in hospital admission deductibles in 2022, up $ 72 from $ 1,484 in 2021. The daily co-insurance rates for the 61-90th days of hospital treatment for the beneficiary, lifetime reserve days, and in 2022, the number of patients in skilled nursing facilities will also increase.

“CMS is committed to providing high quality service and affordable coverage for those who rely on Medicare today, while protecting Medicare’s resilience for generations to come,” CMS administrator Chiquita Brooks-LaSure said in a statement. news release… “The increase in Part B premiums for 2022 is a constant indication that rising drug prices threaten Medicare’s affordability and sustainability.”

Medicare drug beneficiaries will see monthly premiums ranging from $ 0 to $ 77.90 based on their income.

Legislators addressed the issue of the cost of prescription drugs in the Reconstitution Improvement Act. Rep. Frank Pallone (DN.J.), chairman of the Energy and Trade Committee, said the rise in Medicare premiums underscores the need for Congress let Medicare discuss these prices

“The skyrocketing drug prices are not only making it difficult for older people to get the essential drugs they need, but are also increasing their insurance premiums for doctor visits and outpatient care,” Pallone said in a press release.

Nearly 90% of consumers believe the federal government should negotiate directly with drug manufacturers to bring prices down, according to a June Kaiser Family Foundation poll. Respondents across the political spectrum agreed that reducing the cost of prescriptions should be a key priority for President Joe Biden’s administration.

In June, the FDA approved a $ 56,000 intravenous drug, Aducanumab, marketed under the name Aduhelm, contrary to FDA advisors’ recommendations that the agency rejected the manufacturer’s application for Biogen.

New treatments for Alzheimer’s are expected to account for more than 1% of all national health spending by the mid-2020s, according to a report released earlier this year by the nonprofit research group Altarum. The cost of non-retail drugs – treatment delivered in hospitals or clinics – will rise by at least 25%. The report says that spending on prescription drugs in the United States will grow by at least 8% over the next few years.

At least six Blue Cross Blue Shield affiliates have chosen not to cover Aduhelm. Commercial insurers such as UnitedHealth Group said they are awaiting coverage decisions based on federal government action. The Mount Sinai Health System and Cleveland Clinic said they would not prescribe the drug, citing concerns that it would not work.

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