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Changes To Medicare In 2016

Changes to Medicare in 2016

Changes to Medicare happen each year, and they affect millions of Medicare participants. Considering Medicare is a crucial part of how Americans 65 and older manage their healthcare expenses, it’s important to know what new Medicare provisions will take effect in 2016 and what impact they’ll have on your benefits and budget. Here you’ll learn more about key Medicare changes for 2016.

Increased Medicare Part B premiums — for some

Although Part B premiums are subject to modest annual increases, 2016 is a special case in which only about 30% of Medicare participants will see a premium increase for their Part B.  This is due to what’s known as the hold-harmless provision, which prevents Medicare from increasing premiums when there are no increases to the Social Security cost-of-living adjustment in benefits.

The hold-harmless provision applies to roughly 70% of Medicare participants – those who have had their premiums withheld from their Social Security checks. Therefore, the other 30% will be subject to the increase (from $104.90 to $121.80).

Deductibles and copayments will rise for Part A and Part B

Medicare costs for Part A and Part B generally rise from year to year.  The changes from 2015 to 2016 are listed below:

                                                                         2015                              2016
Part A: premium Most people don’t pay a monthly premium for Part A. If you buy Part A, you’ll pay up to $407 each month. Most people don’t pay a monthly premium for Part A. If you buy Part A, you’ll pay up to $411 each month.
 

Part A:       hospital deductible and coinsurance

 

You pay:

·  $1,260 deductible for each benefit period

·  Days 1-60:    $0 coinsurance

·  Days 61-90:  $315 per day

·  Days 91-150: $630 per day

·  Beyond 150 days: all costs

 

You pay:

·  $1,288 deductible for each benefit period

·  Days 1-60:    $0 coinsurance

·  Days 61-90:  $322 per day

·  Days 91-150: $644 per day

·  Beyond 150 days: all costs

Part B: premium Most people pay $104.90 each month. Most people pay $121.80 each month.
 

Part B:  deductible and coinsurance

 

$147 per year.

After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services.

 

$166 per year.

After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services.

For more information about Medicare changes in 2016, call us at 941-405-3900.

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