2016 Medicare Parts A & B and Deductibles
Part B Premiums/Deductibles
By law most Medicare Part B recipients who receive Social Security income will be “held harmless” from any premium increase in 2016 because there will be no cost of living increase in Social Security payments. The premium will remain at $104.90 per month, deducted from one’s Social Security check.
Beneficiaries not subject to the “hold harmless” provision include those on Medicare not collecting Social Security benefits, new beneficiaries who enroll in Part B for the first time in 2016, and dual eligible beneficiaries who have their premiums paid by Medicaid will pay $121.80 per month as a result of the Bipartisan Budget Act signed into law by President Obama earlier this month.
High income beneficiaries must pay higher Part B premiums depending on their tax filing status based on the Bipartisan Budget Act of 2015. Beneficiaries who file an individual tax return with Adjusted Gross Income higher than $85,000 up to $214,001 will pay premiums ranging from $170.50 to $389.80 per month.
Beneficiaries who file a joint tax return with Adjusted Gross Income higher than $170,000 up to $428,001 with pay premiums ranging from $170.50 to $389.80 per month.
Beneficiaries who are married and lived with their spouse at any time during the year, but file a separate tax return from their spouse with Adjusted Gross Income greater than $85,000 up to $129,001 will pay premiums ranging from$316.70 up to $389.80 per month.
The annual deductible for Part B beneficiaries will be $166 in 2016.
Part A Premiums/Deductibles
Medicare Part A covers inpatient hospital, skilled nursing facility and some home health care services. Almost all Medicare beneficiaries do not pay Part A premiums since they or a spouse have had at least 40 quarters of Medicare-covered insurance premiums deducted from their pay checks. Enrollees age 65 and older not connected to spousal earnings of at least 40 quarters, and certain persons with disabilities will pay monthly premiums ranging from $226 to $411 per month depending on the number of working quarters accumulated over their lifetime below the 40 quarter requirement.
The Part A annual deductible for hospital admission will be $1,288 in 2016 which covers a patient for the first 60 days of care. There will be a deductible of $322 for days 61 through day 90 of hospitalization in a benefit period, and $644 for lifetime reserve days.
For beneficiaries in skilled nursing facilities, the daily co-insurance for days 21-100 in a benefit period will be $161 for 2016.
There you have it. Call us at 785-537-0366 if you need help.
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