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 61^st through 90^th 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 21^st through 100^th 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