Medicare Advantage premiums are $2 lower per month in 2022

Photo: Maskot/Getty Images

The average premium for Medicare Advantage plans will be lower in 2022 at $19 per month, compared to $21.22 in 2021, according to the Centers for Medicare and Medicaid Services.

However, Part D coverage is rising to $33 per month, compared to $31.47 in 2021.

The agency 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.

Medicare open enrollment begins on October 15 and ends on December 7. 

WHY THIS MATTERS 

Enrollment in MA continues to increase, CMS said. In 2022, it's projected to reach 29.5 million people compared to 26.9 million enrolled in a Medicare Advantage plan in 2021. 

For many seniors, MA is the preferred health insurance because of its low upfront monthly costs and added benefits. 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%.

Congressional Democrats are currently debating whether to add vision, hearing and dental benefits to original Medicare. Concerns have been raised over the cost, estimated at $358 billion over a decade, and its effect on benchmark calculations, which could affect Medicare Advantage supplemental benefits.

THE LARGER TREND

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.

CMS will continue to test the Part D Senior Savings Model for insulin for seniors in more than 2,100 plans in 2022. This year, over 500 new Medicare Advantage and Part D prescription drug plans, as well as two new pharmaceutical manufacturers of insulin, are joining the model that reduces out-of-pocket spending.

Additionally, more than 1,000 Medicare Advantage plans will participate in the CMS Innovation Center's Medicare Advantage Value-Based Insurance Design Model in 2022, which tests the effect of offering a projected 3.7 million people customized benefits designed to better manage their diseases and address 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. It provides enrollees increased access to palliative and integrated hospice care. 

To help with their Medicare costs, low-income seniors and adults with disabilities may qualify to receive financial assistance from the Medicare Savings Programs. Only about half of eligible people are enrolled, CMS said.  

ON THE RECORD

"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."

Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com