Medicare beneficiaries who had hoped to receive some relief from the 14.5% increase in Part B premiums this year are going to be disappointed, but they may see lower premiums next year.
Medicare Part B premiums, which cover doctors’ fees and outpatient services, rose from $148.50 per month in 2021 to $170.10 per month this year. When the 2022 premium was announced last November, the Centers for Medicare and Medicaid Services said the unusually large increase was driven in part by the statutory requirement to prepare for potential expenses, such as spending trends driven by COVID-19 and the uncertain pricing and utilization of Aduhelm, a new drug to treat Alzheimer’s disease.
At the time CMS announced the 2022 premium in the fall of 2021, Aduhelm cost an average of $56,000 per year. After the 2022 Medicare Part B premium was set, the manufacturer of Aduhelm reduced the price to an average of $26,200.
In January, Department of Health and Human Services Secretary Xavier Becerra instructed CMS to reassess the 2022 Part B premium amount in response to the reduction in the price of Aduhelm.
On Friday, CMS announced that any savings due to changes in the cost of Aduhelm will be reflected in the 2023 Medicare Part B premium. “Given the information available today, it is expected that the 2023 premium will be lower than 2022,” the announcement said. The final premium determination will be made this fall.
In a report accompanying the announcement, CMS determined that it was impractical to try to adjust Medicare Part B premiums mid-year in 2022.
“Such a change would require the retroactive processing of million of claims which would take over a year and additional resources to complete,” according to the report. It also determined that CMS does not have sufficient authority to send premium refunds directly to beneficiaries.
“CMS found that incorporating the premium effects of Aduhelm’s price reduction … into the 2023 premium is the only practically feasible option,” the report said.
(Questions about new Social Security rules? Find the answers in Mary Beth Franklin’s new 2022 ebook at Maximizing Social Security Benefits)
Two wirehouse veterans choose advisor-owned model as independents target ultra-high-net-worth clients beyond portfolio management.
Guardian's Nancy DeRusso tells InvestmentNews how advisors can help close the 'longevity gap'.
Goldman Sachs retirement survey finds 83% want guaranteed income, while the annuities providing that income increasingly hold private credit.
The AI meeting assistant's Advisor Intelligence plugin turns client conversation data into annual reviews, tax scans and attrition alerts.
Chuck Roberts and Stifel have been facing scrutiny due to sales of structured products and structured notes.
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
