Medicare Part B outpatient premium to see one of its largest hikes ever

[SheltieLover]

https://www.localmemphis.com/article/news/nation-world/medicare-part-b-outpatient-premium-increase/507-d9f8a58b-706c-453c-b222-73e08cd34391

WASHINGTON — Medicare's “Part B” outpatient premium will jump by $21.60 next year, one of the largest increases ever. Officials said Friday a new Alzheimer's drug is responsible for about half of that.

The increase guarantees that health care costs will gobble up a big chunk of the recently announced Social Security cost-of-living allowance, a boost that had worked out to $92 a month for the average retired worker.

More at link. How does drug impact this? Should this not be a Part D issue?

[Woodswalker]

1. When I reached medicare age I thought great, finally free and clear of health insurance worries

Haa, not a chance in this shithole country

[SheltieLover]

2. Why is a drug impacting Part B?

[Tanuki]

3. Per the article:

..."The drug would add to program costs because it's administered in a doctor's office and paid for under Medicare's outpatient benefit."

[SheltieLover]

4. Thats bs, imo.

Rx it under Part D!

[progree]

7. Some drug costs are covered by part B --

https://www.medicare.gov/coverage/prescription-drugs-outpatient

[SheltieLover]

9. Thx

Ps - This one should not be! Both efficacy & approval process quite questionable, at best. And why charge everyone?

[progree]

10. You're welcome. Medicare is a wonderously complex program that gets more complex every year

"Why charge everyone?"

That's how insurance is supposed to work. Though note that people on regular Medicare without a supplement plan aka Medigap pay 20% of part B costs, which can be a horrendous sum.

[SheltieLover]

11. True, but this drug is an outlier on costs

I do not have Part D for several reasons. Not interested in paying for this.

So the deductible goes up & Part B goes up. Of course gap cost goes up.

Where is the great benefit increase?

[progree]

13. I'm not knowledgable about this particular drug. But my impression is that its little benefit at

great cost. So you have a valid point.

As a side note, an interesting thing about Part D - for late enrollment, there is a lifetime penalty, a surcharge of a certain amount per month one is late in enrolling (this is charged every month once one does enroll).

I did the math, and found it was cheaper to enroll on time in a Part D program (the premium is $30/month or so a month), even though I don't use any prescription drugs, than to face the late enrollment penalty in later years when I likely -- almost certainly -- would need some part D drugs.

[SheltieLover]

17. Thx for sharing

Yes, I'd read that & opted for a top gap policy instead of drug coverage. Ridiculous policy to charge a lifetime penalty.

[progree]

18. I'm pretty sure Medigap policies don't cover drugs except those covered by Part B

That's true for ALL Medigap policies by law.

I have a Medigap policy too. And a Part D policy. And original Medicare. 3 premiums, thank goodness for autopay (Part B is deducted from my S.S. check).

(In contrast, most Medicare Advantage plans do have drug coverage, beyond part B drugs, including the kinds that are covered by Part D plans . Most M.A. plans, but not all of them).

The Medicare Part B and D penalties for late enrollment is like the ACA's penalty for not enrolling (now zeroed out) -- so people don't game the system by not enrolling when they are relatively young and healthy, thus causing all the cost burden to be borne by the unhealthiest and oldest. To even things out. We're very likely to be old and unhealthy some day.

[Native]

26. I enrolled my husband in a Part D program for only $7 a month for the same reason.

[Mugu]

28. Same here.

[Evolve Dammit]

22. It's sad and maddening when you realize how behind we are for a "developed" country.

[Ferrets are Cool]

24. When I turned 65, my insurance went UP $148 a month and does't cover nearly as

much as ObamaCare. What a country, right?

[dsc]

6. That is insane that one drug can cost that much

[SheltieLover]

8. And both its efficacy & the approval process contentious

[ProfessorGAC]

12. Oddly Enough...

...my part D coverage premium goes down starting January 1. BlueCross PDP.
And, a cheap, generic BP med I had to cover out of pocket ($63 for 3 months) was not on the formulary, but will be 1/1/22.
So Part B is spiking up, but my Part D is going down.
I don't know what that means, I just found it weird.

[SheltieLover]

15. That is weird

Glad your meds will be covered for you.

I don't have a Part D, partly because of cost & partly because the more reasonable plans don't do much to reduce cost of inhalers, which would be about the only meds I would need. 😏

[Akacia]

14. I hate how complicated it all is.

I blame the insurance companies for this. There really is no reason for it to be.

[SheltieLover]

16. Absolutely!

[progree]

19. The "insurance company" for straight Medicare (Medicare Part A & B) is the government

It's straight Medicare Part B (Uncle Sam) that is deciding to cover this drug and increase the Part B premium.

Whereas private insurance companies, and only private insurance companies, sell Medigap (aka Supplement) policies, Part D, and Medicare Advantage.

[catrose]

20. And EVERY year you have to do research for several months

because the insurance companies change their offerings.

[Midnight Writer]

21. Really. I just went a round with my insurance and Medicare. We shouldn't have to worry about this.

Especially when you are sick and under duress.

Or your loved one is.

And you can't understand the damn insurance forms.

Or know where to get the money to keep creditors off your back.

Single payer, please.

[Akacia]

29. I am in total agreement with single payer.

[Evolve Dammit]

23. I'm just starting to research it all, and it is mind-numbingly, unnecessarily complicated (and $$)

[Evolve Dammit]

25. and almost nothing for preventative (dental, vision, hearing). Just coverage when you have a life

threatening issue from the lack of preventive. As my dear Italian friends would say: "It maka no sense" while doing the international symbol for crazy by circling ear multiple times with index finger... Seriously, we are a third-world country for health care and it is strictly pharma and giant "health-care providers" essentially running Congress and making the rules, challenged by a small minority.

[Cozmo]

27. Of course Medicare is going up. This is how government routinely offsets COLA

Seniors can always count on this insult to their dignity.