Issue Brief 21-23
December 23, 2021

The Centers for Medicare & Medicaid Services (CMS) announced a $21.60 (15%) increase in the standard monthly Part B premium for Medicare beneficiaries in calendar year (CY) 2022. This is the largest dollar increase in the program’s history and stems from several factors, most notably the uncertainty regarding the potential use of the Alzheimer’s drug, Aduhelm.

Medicaid is responsible for paying premiums for dual eligibles (persons enrolled in both Medicare and Medicaid). As a result of the higher premiums, FFIS estimates that state Medicaid costs will increase between $902 million and $1 billion, depending on the end date of the COVID-19-related, temporary 6.2 percentage-point increase in the Federal Medical Assistance Percentage (FMAP).