There are also changes to the Medi-Cal administration in California. Namely, recipients will have to pay a premium of up to $150 per month for Medi-Cal coverage. The rate that beneficiaries have to pay will vary depending on their income level.
Furthermore, some changes affect Medicare Part A and B coverage. For Medicare Part A, the premiums and deductibles will be increasing. The same case applies for Medicare Part B. These changes focus on reducing costs by encouraging doctors to provide more care in their patients’ homes instead of hospitals where Medicare spending is most expensive. Additionally, social media and other technologies will help coordinate the care process more effectively.
If you are on Medicare, there are three different types of plans that you might be eligible for, including Original Medicare, run by the federal government that consists of Part A hospital coverage and Part B outpatient coverage.
Second are the Medicare Advantage Plans, approved by the federal government and run by private health insurance plans. They offer all of the benefits of Original Medicare, plus additional benefits like prescription drug coverage (Part D) and vision, hearing, and dental coverage; or, third, Medi-Cal, California’s Medicaid program.
If you are on Original Medicare, you can add Part D prescription drug coverage, run by private drug plans approved by Medicare. If you are on Medicare Advantage Plans or Medi-Cal, you can purchase Part D prescription drug coverage to supplement your plan’s benefits.
Medicare Part A
Part A coverage will increase by $15 to $274 for those with 30 quarters and $499 for those between 30 and 39 quarters.
Medicare part B
The Part B deductible will increase from $148.50 in 2021 to $170 in 2022 with a $233 deductible. Unfortunately, it means that in 2022, beneficiaries will have to pay more out of pocket before their Medicare coverage starts rolling.
Medigap Plans F and G High-deductible
The high-deductible versions of Medigap plans F and G offer lower premiums for a higher deductible. As such, you are responsible for paying a more significant portion of your medical costs out-of-pocket before your insurance policy begins to pay its share.
For some seniors, this could mean significant savings on premiums each month. However, it is essential to remember that you will also need to save money for healthcare costs throughout the year.
Medicare Part C (Medicare Advantage)
The Medicare Advantage Plans are sponsorships from the United States Government (CMS) for each person who enrolls in their plan and then pays that person’s medical bill. The changes would limit how much money they spend on average for each person enrolled in their programs.
To do this, CMS is proposing to change how much they are paid per person so that these plans have more incentive to limit the use of medical services by enrolling people in their plans.
CMS has proposed changes to the risk-adjustment program for California, resulting in fewer people enrolled in Medicare Advantage Plans. As a result, you may find the fee-for-service Medicare plan or Medi-Cal more affordable than their Medicare Advantage Plan.
Medicare Part D
The premiums for a Part D plan are estimated to rise from $33.50 in 2020 to $37.50 in 2021 and $41.50 in 2022. However, the premiums covered under Medicare will remain the same as 2019 for 2021 and 2022.
However, the annual deductible is estimated to rise from $405 in 2020 to $435 in 2021 and $465 in 2022. As a result, you may dig deeper into more out-of-pocket for your medications before your Part D plan covers them.
Part D Donut Hole
The expected Medicare changes will also close the Part D donut hole. This hole is a coverage gap that many seniors fall into once they have spent a certain amount on prescription drugs. They then have to pay for all of their medication costs out of pocket until they reach a higher spending level. Closing the donut hole will mean that seniors will no longer have to worry about suddenly having to pay for a large portion of their medication costs.