Nearly one-third of Medicare Recipients May Face 52 percent Premium Increase in 2016

Medicare is a federal program which provides health insurance. You are eligible for Medicare if you are 65 or older or under 65 with certain disabilities. Whether you are on Medicare or plan to enroll once you reach eligibility, the community at large is interested in the future prospects of the program. A recent federal study found that the future of Medicare is both good and bad. 

First, the bad: 

In January of 2016 several million Medicare beneficiaries could see their Medicare Part B monthly premiums increase from $104.90 to $159.30, an rise of 52 percent. Why? It is a confluence of two factors: Medicare Part B costs increased more than expected last year and Social Security is not expected to have a cost of living increase next year. By law, the cost of higher Medicare Part B premiums can't be passed on to most Medicare beneficiaries when they don't get a Social Security raise. As a result, the higher the Medicare costs have to be covered by just 30 percent of Medicare beneficiaries. 

Who are the Medicare beneficiaries who may see a premium increase? 

  • If you are new to Medicare in 2016. 
  • If your income is higher than $85,000 per year.
  • If you pay your Medicare premium directly instead of having it deducted from you Social Security. 

 The Good? 

The massive trust repository which funds Medicare will remain solvent until 2030. Medicare's long-term outlook has improved. as health care costs look to grow at a slower rate in the future. Medicare is a foundational institution for our nation's health and its perpetuation is a good outcome for the nation as a whole. 

Source: Phil Galewitz

If you have any questions relating to the future of Medicare, don't be afraid to contact our office.