Every year, Medicare deductibles and co-payments are adjusted to reflect inflation. Here are the adjustments for 2016:
- The Part A hospital deductible is increasing from $1,260 to $1,288.
- Hospital co-payments for the 61st through 90th days are increasing from $315 to $322.
- Lifetime reserve days co-payments are increasing from $630 to $644.
- Skilled nursing facility co-payments for the 21st through 100th days are increasing from $157.50 to $161.00.
- The Part B annual deductible is increasing from $147 to $166.
- The Part D annual deductible is increasing from $310 to $320.
- 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|