CMS Releases 2022 Premiums and Cost-Sharing Information for Medicare Advantage and Prescription Drug Plans
The Centers for Medicare & Medicaid Services (CMS) released the 2022 premiums, deductibles and other key information for Medicare Advantage and Part D prescription drug plans in advance of the annual Medicare Open Enrollment to help Medicare enrollees decide on coverage that fits their needs. The average premium for Medicare Advantage plans will be lower in 2022 at $19 per month, compared to $21.22 in 2021, while projected enrollment continues to increase. As previously announced, the average 2022 premium for Part D coverage will be $33 per month, compared to $31.47 in 2021.
“We are committed to ensuring that the health system and Medicare work for people, their families and their providers,” said CMS Administrator Chiquita Brooks-LaSure. “Open Enrollment is the one time each year when more than 63 million people with Medicare can review their health care coverage to find new plans or change existing plans, discover extra benefits and help them save money.”
Enrollment in Medicare Advantage in 2022 is projected to reach 29.5 million people compared to 26.9 million enrolled in a Medicare Advantage plan in 2021. Medicare Advantage plans will continue to offer a wide range of supplemental benefits in 2022, including eyewear, hearing aids, both preventive and comprehensive dental benefits, access to meals (for a limited duration), over-the-counter items, fitness benefits and worldwide emergency/urgent coverage. In addition, the percentage of plans offering special supplemental benefits for chronically ill individuals will increase from 19% to 25%.
An increasing number of Medicare Advantage dual eligible special needs plans cover both Medicare and Medicaid services for people who are dually eligible. In 2022, 295 plans (compared to 256 in 2021), will cover all Medicare services, plus Medicaid-covered behavioral health treatment or long term services and supports, through a single organization.
CMS will continue to test the Part D Senior Savings Model in more than 2,100 plans in 2022, increasing access and affordability to select insulins for seniors. Over 500 new Medicare Advantage and Part D prescription drug plans, and two new pharmaceutical manufacturers of insulin, are joining the model this year to provide even more opportunities for eligible seniors to reduce their out-of-pocket spending on insulin.
Additionally, more than 1,000 Medicare Advantage plans will participate in the CMS Innovation Center’s Medicare Advantage Value-Based Insurance Design (VBID) Model in 2022, which tests the effect of offering a projected 3.7 million people customized benefits that are designed to better manage their disease(s) and meet a wide range of social needs, from food insecurity to social isolation. The VBID Model’s Hospice Benefit Component, now in its second year, will also be offered by 115 Medicare Advantage plans in portions of 22 states and U.S. territories and provides enrollees increased access to palliative and integrated hospice care.
Medicare Open Enrollment begins on October 15, 2021, and ends on December 7, 2021. During this time, people eligible for Medicare can compare 2022 coverage options between Original Medicare, and Medicare Advantage and Part D prescription drug plans. Medicare health and drug plan costs and covered benefits can change from year to year, so people with Medicare should look at their coverage choices annually and decide on the options that best meet their health needs.
Medicare.gov provides clear, easy-to-use information as well as an updated Medicare Plan Finder to allow people with Medicare to compare their personalized options for health and drug coverage. CMS will update the Medicare Plan Finder with the 2022 Medicare health and prescription drug plan information on October 1, 2021. 1-800-MEDICARE is available 24 hours a day, seven days a week to provide help in English and Spanish as well as language support in over 200 languages. In addition, Medicare enrollees can contact their State Health Insurance Programs (https://www.shiphelp.org/) for one-on-one assistance. People who want to keep their current Medicare coverage do not need to re-enroll.
To help with their Medicare costs, low-income seniors and adults with disabilities may qualify to receive financial assistance from the Medicare Savings Programs (MSPs). The MSPs are essential to help millions of Americans access high-quality health care at a reduced cost, yet only about half of eligible people are enrolled. The MSPs help pay Medicare premiums and may also pay Original Medicare deductibles, coinsurance and copayments if people meet the conditions of eligibility. Enrolling in an MSP offers relief from these Medicare costs, allowing people to spend that money on food, housing or transportation. Seniors interested in learning more can visit: https://www.medicare.gov/your-medicare-costs/get-help-paying-costs/medicare-savings-programs
To view a news alert on the projected 2022 Medicare Part D average premium, please visit: https://www.cms.gov/newsroom/news-alert/cms-releases-2022-projected-medicare-part-d-average-premium
To view the premiums and costs of 2022 Medicare Advantage and Part D plans, please visit: https://www.cms.gov/medicare/prescription-drug-coverage/prescriptiondrugcovgenin. Select the various 2022 landscape source files in the downloads section of the webpage.
For state-by-state information on Medicare Advantage and Part D in 2022, please visit: https://www.cms.gov/files/document/92921-state-state-fact-sheets-2022-medicare-advantage-and-part-d-landscape-final.pdf.
For more information on the Part D Senior Savings Model, including plan participation for 2022, please visit: https://innovation.cms.gov/innovation-models/part-d-savings-model.
For more information on the Medicare Advantage Value Based Insurance Design Model, including plan participation, please visit: https://innovation.cms.gov/innovation-models/vbid.