Medicare Changes for 2016

Every year, Medicare deductibles and co-payments are adjusted to reflect inflation. Here are the adjustments for 2016:

  1. The Part A hospital deductible is increasing from $1,260 to $1,288.
  2. Hospital co-payments for the 61st through 90th days are increasing from $315 to $322.
  3. Lifetime reserve days co-payments are increasing from $630 to $644.
  4. Skilled nursing facility co-payments for the 21st through 100th days are increasing from $157.50 to $161.00.
  5. The Part B annual deductible is increasing from $147 to $166.
  6. The Part D annual deductible is increasing from $310 to $320.
  7. The Part D annual out-of-pocket limit is increasing from $4,550 to $4,700.

In 2016, the standard Part B premium amount will be $121.80, up from $104.90 per month (or higher depending on income).

However, most people who get Social Security benefits will continue to pay the same Part B premium amount as they paid in 2015. This is because there wasn’t a cost-of-living increase for 2016 Social Security benefits.

The 2016 premium will apply if a person:

  • Enrolls in Part B for the first time in 2016.
  • Doesn’t get Social Security benefits.
  • Is directly billed for Part B premiums.
  • Has Medicare and Medicaid, and Medicaid pays the premiums. (The State will pay the standard premium amount of $121.80.)
  • Has modified adjusted gross income from 2 years ago that is above a certain amount:

 

If Yearly Income in 2014 Was:  

2016 Monthly Premium

File Individual Tax Return File Joint Tax Return File Married & Separate Tax Return
$85,000 or less $170,000 or less $85,000 or less $121.80
above $85,000 up to $107,000 above $170,000 up to $214,000 Not applicable $170.50
above $107,000 up to $160,000 above $214,000 up to $320,000 Not applicable $243.60
above $160,000 up to $214,000 above $320,000 up to $428,000 above $85,000 and up to $129,000 $316.70
above $214,000 above $428,000 above $129,000 $389.80

 


John Garner

About John Garner

John Garner has over thirty five years of experience in employee benefits. He specializes in compliance, health care reform, the Health Insurance Portability and Accountability Act (HIPAA), the Consolidated Omnibus Budget Reconciliation Act (COBRA), and the Employee Retirement Income Security Act (ERISA). He helps clients with life, health, and disability benefits, cost containment, flexible benefits, and claim consulting.

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