Plan B Premiums Could Increase by 52 percent for Millions in 2016 - Medicare Consumer - Medicare Consumer

Plan B Premiums Could Increase by 52 percent for Millions in 2016

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According to an article in Kaiser Health News,  Medicare trustees are projecting that 30 percent of seniors will see a 52-percent increase in Part B premiums in January 2016, taking their monthly Part B premiums from $104.90 to $159.30.   The unusually high increase is due to two factors:  the increase in the costs of running the Part B program, and a quirk in the Medicare law.     By law, in a year when seniors see no cost of living increase in their Social Security benefit – as 2016 is expected to be – they may not suffer a Part B premium increase, unless they’re new to Medicare (2.8 million people in 2016) or they earn more than $85,000 (3.1 million people) or they don’t deduct their Part B premiums directly from Social Security (1.6 million people).    The 7.5 million Part B enrollees who meet one of these three conditions will see premiums leap by 52 percent.    Everyone else will see  premiums remain flat at $104.90.     But 2016 Part B deductibles are also projected to increase by 52 percent from $147/year to $223/year, and that would affect everyone.

If over the next several months Social Security decides on a cost of living adjustment that’s greater than zero, these Part B rate increases can be spread over everyone rather than borne by the unlucky 30 percent.

 

 



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