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The United States announces a large increase in Medicare premiums

A 14.5 percent increase in Part B premiums means monthly payments for people in the lowest income group will jump from $148.50 a month this year to $170.10 a month in 2022. Part B covers Medicare medical services, outpatient hospital services, certain home health services, medical devices. , and certain other medical and health services not covered by Medicare Part A, including drugs given in medical offices.

Most people with Medicare will see a 5.9% cost-of-living (COLA) adjustment in their 2022 Social Security benefits, the largest COLA in 30 years. This significant increase in COLA will more than cover the increase in Medicare Part B monthly premiums,” the Centers for Medicare & Medicaid Services (CMS) said in a statement.

“Most people will see a significant increase in Social Security benefits with Medicare. For example, a retired worker who currently receives $1,565 a month from Social Security can expect a net increase of $70.40 more per month. But After the Medicare Part B premium is deducted.”

CMS said part of the increase was due to uncertainty about how much the agency would pay to treat beneficiaries treated with the Food and Drug Administration-approved Alzheimer’s drug Adolhem. will be done by The US over the objections of its advisers in June. Some experts estimate that it will cost $56,000 a year. Medicare is deciding whether you pay for it now on a case-by-case basis.

Because Aduhelm is administered in doctor’s offices, it must be covered by Medicare Part B plans, not Part D plans, which pay for drugs purchased at pharmacies. Enrollees in traditional Medicare are charged 20% of the cost of most Part B drugs, which translates to about $11,500 in out-of-pocket costs for those prescribed Aduhelm.

“The Part B premium increase for 2022 is continued evidence that rising drug costs threaten the affordability and sustainability of the Medicare program,” CMS Administrator Chiquita Brooks-LaSure said in a statement. “The Biden-Harris administration is working to make drug prices more affordable and equitable for all Americans, and advancing drug pricing reform through competition, innovation and transparency.”

Medicare is a federal health insurance plan that covers more than 62 million people, most of whom are 65 or older.

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