2016 Medicare Costs to Rise Drastically (for some)

Some people will see a dramatic increase in Part B premiums and deductibles for Medicare in 2016…but then it is expected to drop back to “normal” levels in 2017.

For seven in 10 Medicare beneficiaries 2016 will be much like 2015. They will pay $104.90 per month for their Medicare Part B premium just as they did in 2015.

But 2016 might not be anything like 2015 for some 30% of Medicare beneficiaries — roughly 7 million or so Americans. That’s because premiums for individuals could increase a jaw-dropping 52% to $159.30 per month ($318.60 for married couples). And for individuals whose incomes exceed certain thresholds, premiums could rise to anywhere from $223.00 per month up to $509.80 (or $446 to $1,019.60 for married couples), depending on their incomes.

See if this will affect you: Read the full article from USA Today

If you have a Medicare Supplement Plan F or C you will be particularly affected by this because they are also raising the Part B deductible for some people to $223 (from the current $147). Plans F and C pay that deductible so the insurance companies will be looking to offload that additional cost to the consumer by raising premiums. We’ve already seen some Plan F premium spikes due to this announcement. This is one of the reasons I prefer Plan G or N over F.