The year 2016 will send shockwaves to about 30 percent of Medicare beneficiaries, or roughly 7 million Americans. They’re going to be paying a lot more for their monthly Medicare Part B premium. 
Individuals affected will see their monthly premiums rise from about $104.90 to $159.30, and $318.60 for married couples. Those whose income exceeds the threshold, as defined by individuals making more than $214,000 or couples making more than $428,000 per year, the projected increase is anywhere from $223 per month up to $509.80 per month. For high-earning married couples, their premiums can increase from $446 to $1,019.60 per month.
It all has to do with a legal provision that addresses cost-of-living adjustments for Social Security benefits, and the fact that there won’t be an adjustment next year. Unless there is action by Congress or the Department of Health and Human Services, the premium increases will go into effect in 2016. A bill to block the premium spikes was recently introduced, but the outcome is pending.
Here’s what you need to know. The premiums will affect:
– New enrollees in 2016
– Enrollees who don’t collect Social Security yet
– Enrollees with high incomes (individuals earning $85,000 or married couples bringing in $170,000)
– Dual Medicare-Medicaid beneficiaries
If you’re part of this group, you’ll want to do some extra planning.
Those who have deferred claiming Social Security, and who enroll in Part B for the first time in 2016, may want to consider enrolling earlier if they’re already 65 and eligible. Individuals can avoid higher premiums if they start receiving their Social Security benefits, and have their premiums deducted, in November and December 2015.
If you are already on Medicare, or could apply immediately, and you were going to start Social Security benefits in the next year or so, and you are not subject to a high income threshold, some financial advisers say you should consider applying for both of those benefits rights now. By filing earlier and receiving both your Social Security benefits and Medicare by the end of 2015, you’ll fall into the group that will be exempt from the premium increase. Generally filing a month in advance is sufficient.
For those who have higher incomes, consider if you’ve had a life-changing event, such as a job loss, marriage, divorce, or death of a spouse, that has put you in a lower income bracket. You could qualify for an exemption based on these events.
You should speak to your financial adviser and if you need a referral, we have someone we can refer you to here at Benton White Insurance. You could also reach a representative from the Social Security Administration for various options that may be available to you, so you can maximize your future Social Security payments.
As I have said many times this year, healthcare is in a state of major transition and this is just another domino falling as a result of the changes. Having all medical history and ailments covered under a national health insurance plan is a great benefit to all of us but we’re all now paying much higher premiums for that privilege. There isn’t a premium rate ceiling in place yet and we’ve seen nothing in the short or long term that will control these price variances. Stay tuned!
If we can help you with insurance of any type, we are ready to earn your business! Let us know how we can help! Reach us by email at info@BentonWhite.com or call any of our staff at 615.377.1212.
[Portions of this article taken from an online release from CNBC.com – “Bad news for some Medicare beneficiaries” by Sharon Epperson & Judy Gee]
