Saturday, November 14, 2015

Update on Medicare's 2016 costs and deductibles

The Center for Medicare and Medicaid Services (CMS) released on November 10, 2015 what the monthly cost will be for Medicare's Part B (outpatient treatment) beginning January 1, 2016. Some points on these:

● Individuals currently enrolled in Part B, and not earning over $85,000, will continue to pay $104.90 each month. The amount is the same as in 2015 because CMS has a hold harmless regulation so a person's monthly payment will not be reduced if Social Security will not have a cost of living increase in the upcoming year.
Note: Part B's monthly cost for individuals is normally based on Medicare's total Part B cost; divided by everyone enrolled; and multiplied by 25%.

● Individuals who enroll in Medicare Part B effective January 2016 or later will have a monthly cost of $121.80.

● Everyone enrolled in Part B will continue to be responsible for 20% of the amount Medicare allows for any outpatient treatment. Most individuals buy a Medicare Supplement or a Medicare Advantage plan to cover their 20% cost sharing and the Part A and Part B deductibles.

● The recent federal budget authorization also added a $3 per month surcharge for Part B. It will be added to the monthly cost of everyone enrolled beginning January 1, 2017.

● Medicare's Part A (hospitalization) has a per admission deductible. It will be $1,288 for 2016 up from $1,260.

● Medicare's Part B has an annual deductible. It will be $166 for 2016 up from $147.

Questions - Call my Google Voice # today - (860) 451-9793 if any questions about Medicare in 2016 or a Medicare Health plan to cover your share of Medicare's treatment expenses.