This article includes Medicare Advantage cost information for 2022. For updated costs related to other parts of Medicare, explore our Medicare Costs Guide.
Cost can be an important consideration when shopping for any type of health insurance.
Here’s what you should know about Medicare Part C (Medicare Advantage) costs in 2022, which can help you as you shop for Medicare Advantage plans in your area.
Medicare Part C plan costs for 2022 were announced when new plans were offered for sale during the Medicare Annual Enrollment Period (AEP). It’s never too early to start planning for your potential Medicare costs for the coming year, such as premiums, deductibles and copayments.
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Your Medicare Part C plan premium is the cost you must pay – typically monthly – to belong to the plan.
In 2022, the average premium for a Medicare Part C plan is around $63 per month. This varied from plans with premiums as low as $38 per month in Maine and South Carolina to as high as over $100 per month in North and South Dakota, Massachusetts, Michigan and Rhode Island.1
It’s important to note that many areas of the U.S. may feature $0 premium plans. In fact, over half of all beneficiaries of Medicare Advantage plans with prescription drug coverage (59 percent of beneficiaries) pay no premium for their plan.2
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Some variables that can affect the cost of a Medicare Part C premium include:
While most people do not pay a premium for Medicare Part A, beneficiaries typically pay the standard Part B premium, which is $170.10 per month in 2022.
People who report higher incomes may more for their Part B premiums, due to what is called the Medicare Income-Related Monthly Adjustment Amount (IRMAA).
A deductible is the amount you must pay out of your own pocket toward the costs of covered services and items before your plan coverage kicks in. Plans that include prescription drug coverage may have two separate deductibles: one for medical care costs and one for drug coverage costs.
Some Medicare Advantage plans may include $0 deductibles.
In 2022, the average drug deductible for Medicare Advantage plans is $301.94 per year. Medicare plan drug deductibles can be as high as $480 per year in 2022.
In some states such as Illinois, the drug deductible can be around $400 or higher in 2022. On the other side of the spectrum, Utah's average Medicare plan drug deductible is $182.18.
Medicare Part B requires an annual deductible of $233 for the year in 2022.
The 2022 Medicare Part A deductible is $1,556 per benefit period.
Cost-sharing measures are the share of medical bills that you must pay after your deductible has been met.
Cost-sharing can typically come in two forms:
Cost-sharing such as coinsurance and copays with Medicare Part C plans may vary by plan.
Part B of Medicare typically requires a 20 percent coinsurance payment for covered services and items (after you meet your Part B deductible).
Part A coinsurance could reach as high as $778 per day in 2022 for extended inpatient hospital stays.
A Medicare Advantage plan out-of-pocket spending limit represents an annual cap on your out-of-pocket spending for covered Part A and Part B health care costs.
Once you have reached this amount, your Part C plan will pay for 100 percent of the cost of all covered services and items for the remainder of the year.
By law, all Part C plans must contain an out-of-pocket limit of no more than $7,550 in 2022, though some plans may feature lower limits.
The out-of-pocket limit can help protect you from Medicare out-of-pocket costs that can add up quickly as a result from a serious injury or illness that requires lengthy inpatient hospital stays.
Original Medicare does not feature an out-of-pocket limit, which can be one factor many beneficiaries may consider in joining a Medicare Advantage plan.
If you have questions about Medicare Part C costs or would like to compare Part C plans available in your area, call to speak with a licensed insurance agent today.
Speak with a licensed insurance agent
1 MedicareAdvantage.com's internal analysis of CMS Medicare Advantage landscape source files, Nov. 2021. Data retrieved from www.cms.gov/Medicare/Prescription-Drug-Coverage/PrescriptionDrugCovGenIn.
2 Freed M, et al. (Nov. 2, 2021). Medicare Advantage 2022 Spotlight: First Look. Kaiser Family Foundation. https://www.kff.org/medicare/issue-brief/medicare-advantage-2022-spotlight-first-look.
Christian Worstell is a licensed insurance agent and a Senior Staff Writer for MedicareAdvantage.com. He is passionate about helping people navigate the complexities of Medicare and understand their coverage options.
His work has been featured in outlets such as Vox, MSN, and The Washington Post, and he is a frequent contributor to health care and finance blogs.
Christian is a graduate of Shippensburg University with a bachelor’s degree in journalism. He currently lives in Raleigh, NC.
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