Medicare Announces New Premiums

The Centers for Medicare & Medicaid Services (CMS) announced the 2016 premiums and deductibles for the Medicare hospital (Part A) and physician and outpatient hospital services (Part B) programs.  Since there was no cost of living increase to Social Security  due to a hold harmless clause in the legislation, most current Medicare recipients will not experience an increase in their Part B premiums.  Those who don’t fall under the hold harmless provision were expected to have had a 52% raise in premiums. Congress acted to avoid that large increase.

Instead, premiums for those people increased 16%.  Note that those recipients not subject to the hold-harmless include people who are not yet collecting their Social Security benefits, those who are enrolling in Medicare for the first time in 2016, and recipients who have higher incomes. Here are the new premiums based on income.

Modified Adjusted Gross IncomeMonthly Part B Premiums per personChange
SingleJointCurrent 2015Starting 2016Income related adjustment (versus the standard premium)Percent Change from 2015
Up to $85,000 and already enrolledUp to $170,000 and already enrolled$104.90$104.90$0.000.0%
Up to $85,000 who are new enrolleesUp to $170,000 who are new enrolleesNA$121.80NANA
Above $214,000Above $428,000$335.70$389.90$268.0016%

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