Medicare Will Not Lower 2022 Part B Premium

Medicare's Part B $170.10 basic monthly premium will not be reduced this year, but instead any savings from lower spending will be passed on to beneficiaries in 2023.

U.S. Health and Human Services Secretary Xavier Becerra had ordered the Centers for Medicare and Medicaid Services (CMS) to reassess its record-high premium increase in 2022 for Part B, which covers doctor visits, diagnostic tests and other outpatient services. The $21.60 basic premium hike in 2022 was the largest dollar increase in the health insurance program’s history.

Among the reasons CMS gave for the outsize increase was that it needed to set aside money in its reserves in the event it decided to cover Aduhelm, the new Alzheimer’s drug approved in June by the U.S. Food the Drug Administration (FDA). At the time, Biogen, the medication’s manufacturer, estimated the drug’s price would be $56,000 a year. After considerable pushback, Biogen cut its price estimate roughly in half, saying the drug would cost $28,200 annually effective Jan. 1, 2022. Also, since the premium increase was announced, CMS decided that Medicare coverage of Aduhelm will be limited to beneficiaries enrolled in approved clinical trials.

AARP has urged CMS to lower this year’s premium. “It is unconscionable for a single outrageously priced drug to drive up premiums for all Medicare beneficiaries — many of whom are already struggling to make ends meet,” Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer, said in asking for a reassessment of the $170.10 premium. “Now that the drug maker has cut the price in half, the Medicare Part B premium increase should be lowered as well.”