US announces big hike in Medicare premiums

[left-of-center2012]

The federal government announced a large hike in Medicare premiums Friday night, blaming the pandemic but also what it called uncertainty over how much it may have to be forced to pay for a pricey and controversial new Alzheimer's drug.

The 14.5% increase in Part B premiums will take monthly payments for those in the lowest income bracket from $148.50 a month this year to $170.10 in 2022. Medicare Part B covers physician services, outpatient hospital services, certain home health services, medical equipment, and certain other medical and health services not covered by Medicare Part A, including medications given in doctors' offices.

The Centers for Medicare and Medicaid Services played down the spike, pointing out that most beneficiaries also collect Social Security benefits and will see a cost-of-living adjustment of 5.9% in their 2022 monthly payments, the agency said in a statement. That's the largest bump in 30 years.

"This significant COLA increase will more than cover the increase in the Medicare Part B monthly premium," CMS said. "Most people with Medicare will see a significant net increase in Social Security benefits. For example, a retired worker who currently receives $1,565 per month from Social Security can expect to receive a net increase of $70.40 more per month after the Medicare Part B premium is deducted."

The actual spike -- the largest since 2016 -- could hurt some seniors financially.
It "will consume the entire annual cost of living adjustment (COLA) of Social Security recipients with the very lowest benefits, of about $365 per month," said Mary Johnson, a Social Security and Medicare policy analyst for The Senior Citizens League, an advocacy group. "Social Security recipients with higher benefits should be able to cover the $21.60 per month increase, but they may not wind up with as much left over as they were counting on."

https://www.cnn.com/2021/11/12/health/medicare-premium-hike/index.html

[Haggard Celine]

1. Oh, that's just great!

They're going to give people on SS a raise and then take it back again with more expensive Medicare costs. This is going to kill us if we don't do something to mitigate it. It would have helped people accept this shit if they had passed the BBB bill and allowed Medicare to negotiate drug costs. But Manchin can't have that. Not passing that bill is going to destroy hopes for Democrats to remain in power. God, this makes me so mad!

[Wounded Bear]

19. Actually, I think it was Sinema who fought against negotiating drug prices...

but yeah, they do this every time.

It won't affect me personally, but I realize how it sucks for many people.

[DFW]

2. I don't know in what part of the country one can live comfortably on $1635 a month

But I bow down to anyone who has a cent left over after trying to live a comfortable, debt-free life on that kind of income in or near any major city.

[Celerity]

6. And yet some on here, border on having the vapours at the mere thought of raising

the minimum wage to $15/hr from the ludicrously low $7.25 (20 states still there in 2022). That $7.25 works out to (at 40 hours per week, which is often not given due to benefit avoidance) around 1000 USD per month ( perhaps less in certain areas) after all taxes, federal, state, local, sales, withholdings, etc etc are extracted.

[DFW]

9. If one can barely live on $1563, living on two thirds of that is even more unimaginable

Even with free rent living under a bridge, I wouldn't want to try it. As a supplementary wage earner in a household where the main breadwinner makes considerably more, one could survive, but that is not an assumption an employer, much less a blanket law, can make. It is certainly not an assumption they should be allowed to make, either. If a business has based their survival on the minimum wage being set at $7.25, it needs to recalculate. Maybe be given a year or two to adjust, but it can't stay at this level. If it's inflationary to raise the minumum wage, so be it. No employer would want to try to survive on that. Nor should any of their employees.

[Celerity]

10. Agreed, and danke for the reply my EU-dwelling neighbour.

[DFW]

13. Things vary more widely here from country to country than many might think

But neighbors we are nonetheless. It took more than a millennium of wars between France and Germany for them to figure out that being economically integrated members of an EU was a better idea than periodically fighting wars with the people next door, but Adenauer and DeGaulle finally put it to rest.

Hälsningar från Tyskland!

[JanMichael]

15. Check this out. SS is the only income for 20% of over 65's in the US.

https://www.nasi.org/learn/social-security/the-role-of-benefits-in-income-and-poverty-2/

SS being US Social Security.

From the link:

"Social Security is the major source of income for older Americans. Over 8 in 10 Americans aged 65 and older receive Social Security. For over three out of five (61 percent) of those beneficiaries, Social Security is more than half their total income, and for one in three (33 percent), it is all or nearly all of their income. Social Security is a large share of income because many Americans age 65 and older lack significant income from other sources. Pensions (from private or government employment) were received by about half of married couples (from either the husband's or the wife's career). Among the unmarried, 41 percent of men and 38 percent of women had pensions.

Social Security is the sole source of income for about one in five (20 percent) people aged 65 and older. Certain subgroups are particularly reliant on Social Security. Of those age 65 and older, Social Security is the sole source of income for 40 percent of Hispanics, 33 percent of African Americans, 26 percent of Asian and Pacific Islanders, 18 percent of whites, and 20 percent of unmarried women."

The only way for many of these people to live reasonably comfortably is to:

1. have a Section 8 or Housing Choice Voucher. Or live in a tax credit property or PHA public housing unit. Wait lists for these programs are long and can be 2 to 5 years or more.
.....if they own a home free and clear --- then they have property taxes, repairs and insurance costs.
2. EBT, food stamps, which are capped at $250 or $300/m for most.
3. Local health plan assistance. Again limited availability.
4. Free or reduced cost transportation.
5. LIEAP energy payment assistance which is also usually capped at $200 to $500/annually. Seniors only.
6. at a minimum a phone of some type.

Or live in a RV which isn't free either. Maybe we should start giving out tents and backpacks....yes it is bad.

This can also be applied to non-SSA recipients that are low hourly workers, just add more for household size like kids and then more food and probably technology that schools and jobs demand.

There are some posters on DU that love to say how easy it is to live on basic SSA but they usually have some family support or a cheap house that they rent out for that minimal income. Not apples to apples.

[DFW]

20. I certainly wouldn't want to try it

Even coupled with my wife‘s pension here in Germany (all of €850 a month, or about $1000), it wouldn‘t go far. I don‘t even know at what age my SS maxes out, and I don‘t need it, but I‘m considering putting in for it anyway and donating all after-tax receipts to Planned Parenthood, or St. Jude’s, or something like that.

[JanMichael]

26. Barring illness or some other awful issue we will both have defined benefit pension retirement

What is sad is that we are fairly unique compared to our siblings and other similarly aged family. The rest will likely have something approaching $1,500/month SS and little in other $$ for life. Two are in a similar situation to us.

But under $2,000/m until death? That scares the crap out of me.

Ya America!

[DFW]

27. It would scare anyone in Northern Europe, too

My wife‘s €850 is a joke. The cost of living (I live in the Düsseldorf area—not Munich or Hamburg, but still not Germany‘s low rent district) is crazy high here, and at $7.80 or so per US gallon, a car is a serious financial undertaking.

I put away for a long retirement that my family medical history says I‘ll probably never live to see anyway, but if the expected happens, at least my wife won‘t have to sell the house in order to have food for the rest of her life.

[mucifer]

3. Blame the repubs and sinema for this one. They refuse to negotiate pricing with drug companies

[Celerity]

4. If you're explaining, you're losing.

Last edited Sat Nov 13, 2021, 10:51 AM - Edit history (1)

Especially with the grindingly stupid and unfortunately vast swathes of the American body politic who refuse to vote, or when roused from their bread and circuses enough to do so, tend to exercise the franchise as if mimicking a swinging door buffeted by a fickle wind.

[dalton99a]

18. +1. Blame the FDA decision against science

It was a shameful and sordid decision to approve the drug - against the advice of experts

https://www.npr.org/2021/06/11/1005567149/3-experts-have-resigned-from-an-fda-committee-over-alzheimers-drug-approval

[mnhtnbb]

5. I knew that was coming.

[KY_EnviroGuy]

7. Big pharma never loses but where they refuse to give, someone else loses.

Seniors like me will cut our costs elsewhere to make it up. I won't sacrifice the little dab I save each month for annual bills like property taxes and for emergencies like roof repairs. I am fortunate to be debt-free.

I need to revamp my communications costs anyway (phone and internet) so this will give me incentive and I'll tell my son to be more frugal when he selects our groceries.

Therefore in my case, companies like AT&T and Kroger will bear the cost.

[Sherman A1]

8. Pretty much as expected

No matter the size of the COLA, the Medicare premium will eat it up. Still it is pretty damn cheap health insurance.

[Ms. Toad]

35. Not really -

especially if you have any significant health issues.

Unlike ACA plans your out of pocket expenses are uncapped under traditional Medicare, and there is no drug coverage unless you purchase it separately.

If you go with Medicare Advantage, the most coverage you get is to cap your out of pocket at $3900/year (at least in our area). Since I have an aggressive cancer - I could well hit it every year.

The portion of costs you have to pay is more than on any health plan I've been on recently - especially when you take into account uncapped costs.

(I'm being forced into retirement come April 1, so I'm suddenly deeply immersed in sorting all of this out in order to avoid having to cover two out-of-pocket maximums in a single year. And since everyone has been screaming "Medicare for all" I've been appalled at how little protection there is for serious illness/large prescription costs.)

[Sherman A1]

39. I have a medicate advantage plan

which includes drug coverage and pay nothing more than my monthly premium. $0.00 for Primary and $25.00 for specialists including dentist and eye doctor (even a little bit towards eye glasses). Silver Sneakers is included as well as a quarterly Over the Counter benefit.
I am very happy with my plan.

I fully expected the monthly premium to go up as it does every year, that we had a larger increase this year in the midst of a pandemic is expected as well.

[Ms. Toad]

47. Do you have exhorbitant medical expenses every year?

The lack of (or a very high) out-of-pocket cap on coinsurance and prescription drugs, is a disaster for people with chronic illnesses. My daughter hits her out-of-pocket maximum (regardless of how high it is) within the first plan month of the year. There are times I have, as well - but it's not an every year thing.

I assumed that when people were touting Medicare for All as better than the ACA that part of that consideration was that people with chronic illnesses would be protected. Not under any plan I've found. The ACA plan, and the plans at Starbucks and Amazon are considerably better (and cheaper) for people with significant medical expenses every year.

[Sherman A1]

52. No, we do not

However a Medicare for all plan if we ever see one does not necessarily equate to the current system that is in place as the legislation that will enable something like that to come into being will have to be written and it has not been.

[Elessar Zappa]

41. Yeah, Medicare for All isn't the answer.

I have cystic fibrosis and am on SSDI and Medicare. Because I’m also low income, I qualify for QMB (which I think is Medicaid) to cover all my co-pays. I end up paying virtually nothing for my very expensive disease. I think everyone should be entitled to the type of coverage I have.

[Ms. Toad]

48. Yup.

I hope they get it fixed by the time my daughter is eligible.

Her billed medical expenses are $200,000 every year. She blows through any out-of-pocket max in the first month of the plan every year. Her disease is not one of the named diseases that qualifies her for assistance with copays.

[samplegirl]

11. Nothing like more bad news for seniors

It’s just so sad.

[deminks]

12. Now where did I put that catfood stash...

[left-of-center2012]

14. I recall that was a big story some decades ago

Senior citizens having to buy cat food because their income was so low.
Was that under Nixon?

[kacekwl]

16. Seniors won't forget this come election time.

Looking forward to the "largest" increase in SS payments turns into government taking my milk money again. The only way to punch the bully is to vote for someone else or not vote at all.

[dalton99a]

17. +1. People will vote their pocketbooks

[Marius25]

21. This will absolutely destroy our chances of winning 2022 and 2024.

Sigh... This country just keeps getting worse.

[honest.abe]

22. Why does one drug for a single condition have so much impact??

Something seriously wrong with that.

[left-of-center2012]

23. My rent will go up now too

My rent's based on my income.
Social Security goes up ~ my rent goes up.

[LiberalFighter]

24. That is way too much

[LiberalFighter]

25. Needs to be tied in with the need to regulate pharmacy costs for Medicare.

[helpisontheway]

28. So this does not affect those with Medicare Advantage? I know my mom

said she switched to that.

[left-of-center2012]

29. It affects everyone on Medicare ...

... and Medicare Advantage is a form of Medicare.

I have been on 'Blue Cross/Blue Shield Medicare Advantage HMO' for some years and would have the Medicare Premium deducted from my Social Security check except
I am low income and New Mexico covers it for me so that I
get my full check.

N.M. also covers a lot of my drug costs.

I don't know if other states do that. You or she might check with the state; here it's handled by the New Mexico Human Services Department.

[helpisontheway]

37. Okay. Thank you. Nt

[Chuuku Davis]

49. Medicare Advantage is NOT a form of Medicare.

Medicare advantage is an HMO policy provided by various for profit insurance companies.
There are limitations on the physicians and hospitals that are "in network".
Docs in my area do not contract with them.

[left-of-center2012]

51. Yes it's an option you choose under Medicare

It is not an independent insurance similar to car insurance or homeowners insurance.
You must be eligible for Medicare to get a Medicare advantage plan.

It's an option that you have as part of Medicare.

[Ms. Toad]

34. The bulk of the premium for Medicare Advantate is paid by Medicare part B.

So if you have a $0 premium Medicare Advantage plan, the real premium just went from ~148 to around $170.

[MissMillie]

30. Not everyone on Medicare is on Social Security

Retired state workers from some states don't get Social Security. An increase in Medicare premiums could be very harmful to many of those retirees.

[Ms. Toad]

33. In Ohio, the STRS COLA

has been frozen for 5 years. ***Maybe*** it will go up in a year - that's the next time it will be evaluated.

(I'm heading into forced retirement under this system in a couple of months.)

[dsc]

31. It gets even worse

Last edited Sat Nov 13, 2021, 06:20 PM - Edit history (1)

the co pay on this drug is 11k a year meaning that many poor people will be paying this massive increase for a drug they will never get.

[dalton99a]

32. +1

[Celerity]

36. it's a scam, it's been a flop in the private market, so they suck in Medicare to jack up the sales

Biogen, with sales falling sharply, posts 'obviously disappointing' Aduhelm sales of $300K, CEO Vounatsos says

https://www.fiercepharma.com/pharma/biogen-reports-paltry-aduhelm-sales-300k-obviously-disappointing-says-ceo-vounatsos

Thanks to competitive pressures for its top-sellers, Biogen's sales were on the slide before its controversial FDA approval for Alzheimer's drug Aduhelm. It turns out the drug won't bring a quick financial lift like investors had hoped.

On Wednesday morning, investors learned just how slow the launch has been as Biogen revealed (PDF) a stunning number—$300,000 in third-quarter sales for the drug once hailed as a first-of-its-kind breakthrough. The paltry figure didn’t approach the analyst consensus of $14 million.

“We are obviously disappointed with the delayed uptake of Aduhelm in the U.S.,” Biogen CEO Michel Vounatsos said on a conference call. “The healthcare system remains a major bottleneck. In particular, the lack of clarity on reimbursement has delayed patient access.”

Steeped in controversy since its June approval and saddled with a much-criticized price of $56,000 per year, the fate of Aduhelm appears dependent on whether Medicare will provide coverage for the drug and for others in its class of monoclonal antibodies that target amyloid plaque buildup. That process is due to complete in April 2022.

[dalton99a]

44. "Just pay what we ask. Do not negotiate - because the law says you cannot negotiate."

It is an obscenity

[tenderfoot]

38. Who's responsible for this?

Biden? TrumP? Democrats? GOP? Insurance companies?

Who?

[left-of-center2012]

40. It happens every year

Medicare does it, every year.

"On November 12, 2021, the Centers for Medicare & Medicaid Services (CMS) released the 2022 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs, and the 2022 Medicare Part D income-related monthly adjustment amounts."

https://www.cms.gov/newsroom/fact-sheets/2022-medicare-parts-b-premiums-and-deductibles2022-medicare-part-d-income-related-monthly-adjustment

[tenderfoot]

42. Seems like it's deliberate to undermine Biden

Much like rising costs of goods and gasoline.

It’s like this is how corporate America responds to policies that benefit the 99%. What a brilliant strategy to insure nothing changes for the better.

[left-of-center2012]

43. It's not corporate America

It's Medicare and it's been making these adjustments for decades.

[tenderfoot]

45. I was making a general statement

eom

[left-of-center2012]

46. Okie dokie smokey

Thanks for your input.

[Chuuku Davis]

50. And always seems to outpace

the "inflation rate".