Medicare Premium Increase for 2016
Hi, Toni:
I meant to send you an article from the WSJ, concerning the likely increase in Medicare Part B premiums for 2016. However the article was somewhat confusing to me and may have been estimating the premium increases that are proposed only for higher or highest income participants. I’m not in the highest brackets, but we do make more than the $170,000 and pay $146.90, than the standard $104.90 for Medicare Part B being withheld from SS. I’m sure I’ll hear/read more about increases later in the fall, but an early warning might be helpful for budget planning for those on Medicare…Many Thanks, Tom from Sugar Land, TX
Morning, Tom:
I believe that unless my readers and their friends contact their Congressman’s office and also the Health and Human Services Secretary Sylvia Mathews Burwell, to put pressure on these governmental agencies to not apply this Medicare premium increase. Together as a group, we can gather momentum and cause a change. The decision for the increase or premium hike is in the works, but the final decision will not be made until in late October or early November. We have time to let Washington know just how we feel about this rate increase.
Since the beginning of summer, I have been watching this controversial subject of whether Medicare Part B premiums for those whose income is over $85,000 as an individual or $170,000 for a couple, will be increased by 52% from what they are paying in 2015. Since you and your wife’s Part B premium is $146.90 for each of you, then a 52% increase will raise it to $223.29 or a $76.39 monthly increase. The maximum Part B premiums will be those who as an individual earn above $214,000 or as a couple earn above $428,000. They will see their Part B premiums increase from $335.70 to $510.26 or a $174.56 monthly increase.
This increase will affect nearly a third of the 50 million Americans nationwide who depend on Medicare for their physician care, outpatient surgery and other healthcare services that Medicare Part B provides. 70% of Medicare beneficiaries are expected to “NOT” see a Part B premium increase in 2016, but the remaining 30% would pay a higher premium.
Beginning January 1, 2016, an estimated 15 million seniors, first-time beneficiaries or those currently claiming dual Medicare and Medicaid coverage will see their premiums jump from $104.90 to $159.30 according to the Center for Retirement Research at Boston College. For those with Medicare and Medicaid, the states where they reside should be paying for the Part B premiums. Don’t think the states will be watching how much a person is making because now the state that those on Medicare reside has to pay more for your Part B premium.
With over 50 million Americans on Medicare, I believe that Medicare beneficiaries should united and say enough is enough, but complaining is not in a senior’s DNA. Your average senior is petrified they will lose their Medicare benefits or Social Security check, so they accept what is given to them.
Call your Congressman or the HHS department and tell them that those on Medicare need a change. Email me at Ask Toni and let me know what Washington’s response is to you.
Toni King is the author of the Medicare Survival Guide®, which is on sale in our Store. For personal consultations or to have Medicare/Social Security questions answered, please contact Toni at Ask Toni or call 832-519-8664.
