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.
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