In November, the Centers for Medicare & Medicaid Services (CMS) announced 2016 premium and deductible levels for Medicare Parts A and B. Medicare is the federal health insurance program serving people age 65 and older, people under 65 with certain disabilities, and people of any age with End-Stage Renal Disease.
The announcement from CMS gave partial relief to Medicare beneficiaries impacted by a proposal made during the summer, which entailed a more than 50% hike in Medicare Part B premiums for those not held "held harmless."
2016 Medicare Part B Premiums/Deductibles
As anyone collecting Social Security already knows, there will no Social Security cost of living increase for 2016. Consequently, most people with Medicare Part B are held harmless, or protected, from any 2016 premium increase since that would lead to a decrease in their net Social Security benefits (gross income less the Medicare Part B premium). Those held harmless will continue to pay a Part B premium of $104.90/month in 2016.
Medicare beneficiaries not subject to the federal government's hold harmless provision will pay a base premium of $121.80 per month for Part B in 2016. These beneficiaries are those not yet 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. In total, these groups account for about 30 percent of Americans enrolled in Medicare Part B.
CMS also announced that the annual deductible for all Part B beneficiaries will be $166.00 in 2016.
2016 Medicare Part A Premiums/Deductibles
Medicare Part A covers inpatient hospital, skilled nursing facility, and some home health care services. Nearly all Medicare beneficiaries do not have to pay a Part A premium based on having at least 40 quarters of Medicare-covered employment (either on their own or on the earnings record of a spouse).
The Medicare Part A annual deductible for hospital admission will be $1,288 in 2016, an increase of $28 from the 2015 deductible level. The Part A deductible covers beneficiaries' share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period. Daily coinsurance amounts will be $322 for days 61 -90 of hospitalization in a benefit period and $644 for lifetime reserve days. For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21-100 in a benefit period will be $161.00 in 2016 (up $3.50 from the 2015 level).
Enrollees age 65 and over who have fewer than 40 quarters of coverage and certain persons with disabilities pay a monthly premium in order to receive coverage under Part A. Individuals with 30-39 quarters of coverage may buy into Part A at a reduced monthly premium rate of $226.00 in 2016 (up $2.00 from 2015). Those with less than 30 quarters of coverage pay the full premium, which will be $411.00 a month (up $4.00 from 2015).
Until next time,
Andrew Herman
President, AH Insurance Services Inc.
No comments:
Post a Comment