Recently, the Centers for Medicare and Medicaid Services (CMS) released its 2022 projected average basic monthly premium for Part D.
According to the agency, that amount will be $33. That comes out to an increase of nearly 5% from 2021’s average basic monthly premium of $31.47.
The CMS releases the monthly premium projection each year to help Medicare beneficiaries make decisions on which plan is best for them. The final amount of 2022’s average basic monthly premium will be published in mid- to late September.
Want to discover more about retirement planning? Attend our online workshop!Register Now
Not Familiar with Medicare Part D? Here are Some Key Facts
Here’s an easy way to remember: D stands for drugs. Medicare Part D is the prescription-drug component of the Medicare program.
It’s optional, but if you don’t sign up for it as soon as you’re eligible for Medicare, you could face a late enrollment penalty when you do enroll. For every month that you don’t have Part D coverage, you’ll pay a 1% penalty, which will continue for the rest of your life.
Additionally, if you don’t enroll in Part D upon reaching eligibility, you’ll have to wait to do so until the next annual open enrollment window (starting in mid-October and ending in early December) to sign up. That coverage won’t kick in until January 1 of the following calendar year, so should you need medication in the middle of the year, you’ll have to pay out of pocket.
Beyond the monthly premium, Part D plans also include an annual deductible and copayments.
Other things to consider when choosing a Part D plan is the type of drugs you need and which pharmacies are in the plan’s network. You can also review plan ratings from users and healthcare providers to help you decide.