Biden admin announces raise in Medicare premiums, blames two reasons it went up so high

CNN reports that the US government announced a significant increase in Medicare rates on Friday night. It seems that the culprit is the global epidemic and the vagueness regarding the price of the new Alzheimer’s drug.

People in the lowest income category monthly payments will rise from $148.50 this year to $170.10 in 2022, thanks to a 14.5 percent increase in Part B premiums. Physician services, certain home health services, outpatient hospital services, medical equipment, and other medical services not covered by Medicare Part A, such as drugs administered in doctors’ offices, are all covered under Medicare Part B.

The Centers for Medicare and Medicaid Services pointed out that beneficiaries will receive a 5.9% annual cost of living adjustment next year, the most significant rise in the last thirty years.

According to CMS, the substantial COLA increase will more than cover the Medicare Part B monthly cost increase. A rise in the Social Security income is planned for the majority of Medicare beneficiaries. After the Medicare Part B premium is removed, a retired worker who earns $1,565 per month from Social Security can anticipate a net increase of $70.40 per month.

However, the increase is much more than the Medicare trustees predicted in their annual report released in late August. They forecast a monthly premium of $158.50 in 2022.

The actual increase, which is the highest since 2016, may put some seniors in financial hardships.

CMS stated that the estimated price for Aduhelm, a medicine used to treat Alzheimer’s, could easily reach $56,000 per year. Medicare is thinking about paying for the drug on a case-by-case basis.

Chiquita Brooks-LaSure, Administrator at CMS, said that the increase in the Part B premium for 2022 was ongoing proof that escalating prescription costs undermine the affordability and sustainability of the Medicare program. She underlined that the Biden-Harris Administration was trying to lower the prices of drugs, thus making them more affordable for all Americans.

Let’s also keep this in mind from 2019: