Final 2016 Medicare Part B Premiums and Deductibles Announced

Category: Financial and taxes in retirement

November 12, 2015 — The Centers for Medicare & Medicaid Services (CMS) has announced the 2016 premiums and deductibles for the Medicare inpatient hospital (Part A) and physician and outpatient hospital services (Part B) programs.

Part B Premiums/Deductibles
Most people with Medicare Part B will not see any increase in their premiums in 2016, which will remain at $104.90/month. Since there will be no Social Security cost of living increase for 2016, the law requires that most beneficiaries must be “held harmless” from premium increases.

Beneficiaries not subject to the “hold harmless” provision will pay $121.80, reflecting the provisions of the Bipartisan Budget Act signed into law by President Obama last week. Medicare Part B beneficiaries not subject to the “hold-harmless” provision are those:
– not collecting Social Security benefits
– those who will enroll in Part B for the first time in 2016
– dual eligible beneficiaries who have their premiums paid by Medicaid
– and beneficiaries who pay an additional income-related premium.
These groups account for about 30 percent of the 52 million Americans expected to be enrolled in Medicare Part B in 2016.

Without the hold harmless clause held harmless the estimated base monthly Part B premium would have been $159.30 in 2016. CMS also announced that the annual deductible for all Part B beneficiaries will be $166.00 in 2016. Premiums for Medicare Advantage and Medicare Prescription Drug plans already finalized are unaffected by this announcement. Part A premiums and deductibles were also announced. About 99 percent of Medicare beneficiaries do not pay a Part A premium since they have at least 40 quarters of Medicare-covered employment.
medicare card

Higher income Medicare premiums
A much smaller group of beneficiaries with very high incomes will pay a bit more for their premiums, in effect picking up the slack for those with lower incomes:
– Single filers and Joint filers who report income greater than $85,000 and $170,000 respectively will pay $170.50
– Those earning $107,00 (single) or more and $214,000 (joint) or more pay $243.60
– Earning over $160,000 and $320,000 pay $316.70
– And earners over $214,000 and $428,000 pay $389.80

For full details on these announcements see 2016 Medicare Parts A & B Premiums



Posted by Admin on November 12th, 2015

8 Comments »

  1. Thanks for the update…it is frustrating that the info that one needs from the government comes so late. I posted in the summer about the exceptions to the hold harmless. Since I was one (not yet taking SS so Medicare not directly out of my benefits), I still had time to get SS and be “held harmless”…but this was the info that I was waiting for back then.

    At least there is still time left in the open enrollment period.

    by elaine — November 15, 2015

  2. How can the Gov’t charge for Medicare when the elderly is living on such a strict budget already! Seems to me all they want to do is get rid of our elderly! This is not a benefit. I have worked my butt off since I have been 11 years old and paid into SS. Don’t ridicule us and tell us it is a benefit program.

    by Brenda — November 30, 2015

  3. Brenda,
    These programs (Medicare & SS) are unsustainable unless changes are made soon. After just 5 years the average SS recipient will receive more money than they paid into it during all of their working years. Medicare is in even worse shape. Take me as an example. I was recently in the hospital for a heart attack. I had one stent placed in an artery. Spent one night in the ER and one night in ICU. The hospital charged medicare $94,000.00.

    .

    by Jim C — December 1, 2015

  4. Just got on SSA.gov and compared what I paid in vs what my monthly benefit would be, comes out to about 7.3 years before I get all of it back, penny for penny. However, this does not take into account what I would have earned if my and my employers deposits accrued with compound interest or what I could have made in the stock market. Nor does it take into account all the folks that paid in and kicked the bucket before collecting, nor those that will never collect on their own record because their survivors benefits are higher than their own.
    Medicare would be better off if it sent folks on an all expenses paid Medical Tourism trip for non-emergency care. Medical care expenses here in the US have gotten way out of hand (read: “ripoff”). Put the blame where it belongs.

    by Art Bonds — December 1, 2015

  5. Art, I went to SSA.gov too and did the calculation of what I paid in vs my monthly benefit, and like you, mine will all be paid back in just 7.8 years! No wonder SS will go broke if we live longer than 8 years after collecting SS! My Grandfather started SS at age 70 and he lived to age 110! He collected SS for 40 years!

    by Louise — December 2, 2015

  6. Art, actually SSA does take into account all those who kick the bucket before collecting. The actuaries count on a certain number of people never collecting or collecting less than they contributed. SSA was never a personal deposit box where each individual puts money in and takes out what he/she put in with accumulated earnings. It is a current workers pay in, current retirees take out system. For all those who live a long time and collect far more than they contributed, there has to be a counter balance of those who collect none or less than they contributed. I used to work for SSA and it was always interesting trying to explain this to folks.

    by Leonard — December 2, 2015

  7. Medicare Part B Deductible changes coming: http://www.elderlawanswers.com/congress-schedules-end-to-insurance-coverage-of-medicare-part-b-deductible-15094#

    by Louise — August 12, 2016

  8. I am simply thankful that this country provides Medicare, which was first made possible in 1965 with the nation’s Great Society program. Prior to that, a huge number of seniors were on their own for medical insurance and health and hospital care costs. It is virtually certain Medicare will not go broke. That’s because members of Congress know it’s much too popular and needed, and will put in any necessary fixes to keep it going. This has always been the case when adjustments to Medicare have been necessary to keep it going. Yes, it costs us recipients some money each month, but I choose to be grateful for the program. I am not a wealthy person, either. I make about half of what I did before I retired. And I was just solid middle class then.

    by Clyde R. — August 13, 2016

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