November 14, 2015
How does the budget agreement affect Medicare beneficiaries?
Beneficiaries who are held harmless – current Medicare beneficiaries who are receiving Social Security, are not on Medicaid and are not high income – will continue to pay $104.90. The budget agreement reduced Medicare Part B premiums for beneficiaries who are not protected under the “hold harmless” provision. Rather than paying $159.30, beneficiaries not held harmless will pay $121.80 a month for their premium. This amount includes a $3 surcharge to help finance the reduction. Higher income beneficiaries (individuals with incomes above $85,000 and couples with incomes above $170,000) will pay a slightly higher surcharge.
What about the Part B deductible?
The Medicare Part B deductible for 2016 was also expected to increase by 52% from $147 this year to $223 in 2016. However, the budget agreement reduced the increase in the deductible for 2016, which is set at $166 for all Medicare beneficiaries.