In earlier postings, here and elsewhere, I have written about significant changes in both Medicare and Social Security. Earlier in the year, the MACRA legislation created a future without the Medigap Plan F, a fix for doctor reimbursements, and also changes in means testing starting in 2018.

October brought us the Bipartisan Budget Bill of 2015 which set the stage for the elimination of popular Social Security claiming strategies early in 2016. It also created an “out” for the major premium increases in Medicare Part B that I wrote about back in July. The bill arranged for lower premiums, but include a $3 monthly surcharge to “pay back” the Treasury loan to Medicare to pay for increased costs.

Now, CMS (Centers for Medicare and Medicaid Services) has finally released the actual prices for 2016 Medicare. Let’s start with Part A::

Hospital Deductible (days 1-60):::  $1288    (per admission)
Hospital (days 61-90):::   $322 per day
Hospital (days 91-150):::   $644 per day   (lifetime reserve days)

Skilled Nursing Facility:::  $ 0    (days 1-20)
Skilled Nursing Facility:::  $161.00 (per day, days 21-100)

Part A Premium for Ineligibles:::  $411/mo

Medicare Part B::

In 2016, those Medicare recipients who are also currently claiming Social Security benefits will see their Part B premium stay at $104.90.

Folks new to Medicare in 2016, those being means tested, and those already on Medicare, but not Social Security, will see their Part B premium rise.

Part B Premium:::   $121.80   (includes $3 surcharge; subject to means testing)
Part B Deductible:::  $166  (per year)
Coinsurance:::  20%

2016 Means Testing and Cost Sharing:: Parts B & D

Single Listed***

≤$85K

  $85K-107K

 $107K-160K

$160K- 214K

≥$214K

Part B Actual Premium

121.80

   170.50

   243.60

   316.70

  389.80

Part D Additional Amount

  0.00

   12.70

   32.80

   52.80

  72.90

***Income thresholds doubled for couples filing jointly. Means testing is based on MAGI from tax returns filed two years previously (2014). Couples filing separately are subject to a separate means testing schedule.

I invite you to call me to discuss any questions that you might have. If you’d like my full and revised Medicare Briefly overview pamphlet, send an email to the address listed below to request your copy.

R Allan Jensen
AJ@InsuranceProfessor.net
303.912.5490

-->