Medicare costs could increase slightly next year

Photo (c) Rapeepong Puttakumwong – Getty Images

As consumers are well aware, the price of everything has gone up dramatically. But a new survey suggests the cost of health insurance could be an exception.

A ValuePenguin analysis of health plans available under the Affordable Care Act (ACA) found that Americans will spend an average of $ 541 per month, or $ 6,492 for the year, on health insurance in 2022. That’s only 0.67% more than the average premium this year.

However, there can be quite significant variations depending on the state and type of coverage offered by the plan.

“For states with larger rate increases, insurers cite an overall increase in health care costs, including prescription drug prices, as drivers,” said Robin Townsend, health insurance specialist at ValuePenguin. “Other factors mentioned by insurers include the ongoing COVID-19. pandemic, with an increase in vaccine delivery and the impact of the Delta variant resulting in higher rates in 2022. “

Five states will pay significantly more

According to the analysis, residents of West Virginia, South Dakota, Wyoming, Vermont and Louisiana will pay the highest health insurance premiums next year. Premiums in these states will range from 35% to 54% above the national average.

At the same time, residents of Georgia, New Hampshire, Maryland, Minnesota and Colorado will enjoy the lowest health insurance premiums in 2022. Premiums for residents of those states will be 25-43% lower. to the national average.

South Dakota, West Virginia, New Mexico, Arizona and Texas will see the biggest increase in health insurance costs next year. ACA plans in these states will increase from 13% to 23%.

Three states could see their premiums drop

Three states – Georgia, South Carolina, and Nebraska – will see medicare costs drop next year. Packages will be 11% to 41% cheaper next year.

Among the various plans, the survey found that the Platinum level of health insurance plans will produce the biggest savings in 2022; these costs are expected to drop by just over 4%. Bronze level plans should increase their cost by up to 3%.

ValuePenguin analysts reviewed the thousands of plans available from the Centers for Medicare & Medicaid Services (CMS). However, private employer sponsored plans were not included in the analysis. Medicare no longer for those 65 and over. When the CMS adjusts the premiums for 2022, they will be deducted from the beneficiaries’ Social Security payments, which will increase next year by 5.9%.

About Evelyn C. Heim

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