The Centers for Medicare and Medicaid Services (CMS) revealed what the premiums and deductibles for 2016 would be for patients using Medicare Part A (for inpatient hospital services) and Part B (for physician and outpatient hospital services) on Tuesday.
Earlier this year, Social Security Administration officials said there would be no cost of living increase in 2016 for Social Security. Because of this, the majority of patients using Medicare Part B will be "held harmless" from 2016 premium increases. They will continue to pay the same monthly premium as they did in 2015, $104.90.
Those beneficiaries not eligible for the "hold harmless" provision will pay a monthly premium of $121.80 in 2016; the annual deductible for all Part B beneficiaries will be $166.
“Our goal is to keep Medicare Part B premiums affordable," CMS Acting Administrator Andy Slavitt said. "Thanks to the leadership of Congress and President (Barack) Obama, the premiums for 52 million Americans enrolled in Medicare Part B will be either flat or substantially less than they otherwise would have been.
“Affordability for Medicare enrollees is a key goal of our work building a health care system that delivers better care and spends health care dollars more wisely,” Slavitt said.
This is the first change in the Medicare Part B premium since 2012.
The Medicare Part A deductible for 2016 will be $1,288, up from $1,260 in 2015. Daily coinsurance rates will be $322 for the 61st through 90th day of hospitalization in a benefit period and $644 for lifetime reserve days. For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 in a benefit period will be $161, up from $157.50 in 2015.
Part A beneficiaries with 30-39 quarters of coverage may buy into Part A in 2016 for $226 per month, a $2 hike from 2015. Beneficiaries needing less than 30 quarters of coverage will pay $411 per month, up $4 from 2015.
