Medicare Changes for 2016

11 December 2015

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 61st through 90th 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 21st through 100th 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

 

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