Thread: Medicare premiums for most won't increase in 2016

Medicare premiums for most won't increase in 2016, but higher-income seniors could see a big hike

• ​Kathleen McGrory, Times Staff Writer

Monday, September 21, 2015 7:24pm

Medicare Advantage premiums will remain stable for the sixth straight year, as will premiums for the Medicare prescription drug program known as Part D, federal health officials announced Monday.

But some high-income seniors can expect increases of more than 50 percent in their Part B premiums, according to an analysis by Boston College's Center for Retirement Research.

That includes individuals whose household income tops $85,000 and couples whose household income tops $170,000.

"Seniors could conceivably see no change in their Medicare Advantage or drug plans," said Tricia Neuman, director of the Kaiser Family Foundation's Program on Medicare Policy. "But depending on their circumstance, they could see a fairly significant increase in the Part B premium and deductible."

Consumers can begin comparing plans Oct. 1 on Medicare.gov. The annual open enrollment period begins Oct. 15.

Medicare is available to individuals 65 and older and some people with disabilities. Part A covers hospital stays, nursing home care and hospice. Part B, which is optional and costs most people a monthly premium, covers outpatient hospital care and doctor bills.

There's also an option known as Medicare Advantage, an alternative to original Medicare that's becoming increasingly popular. The privately managed plans often come at a monthly cost but can be less expensive than original Medicare. Many include prescription drug benefits.

The U.S. Centers for Medicare & Medicaid Services expects 17.4 million enrollees, or about 32 percent of the Medicare population, to choose Medicare Advantage plans in 2016.

About 60 percent of those seniors will face no premium increase, the agency said Monday. And while more plans will offer dental, vision and hearing benefits, the average premium will decrease from $32.91 to $32.60.

As for Part D, the average basic prescription drug plan will continue to cost $32.50 per month, CMS said. Some enrollees, however, may pay less for prescription medication because of new policies enacted under the Affordable Care Act.

"Medicare Advantage and prescription drug plans remain affordable and provide high-quality care," CMS deputy administrator Sean Cavanaugh said in a statement.

Neuman, of the Kaiser foundation, a nonprofit health research organization, called the announcement "good news." But she said consumers should still take the time to research specific plans.

"These are overall averages," she said. "Some people could see their (premiums) go up, and others could see them go down."

Neuman noted that plans also can change in other ways. The insurer can increase the deductible or cost-sharing for prescription drugs, or make changes to the provider network.

"That can have a big impact on cost," she said.

What will happen with Part B remains unclear. While most beneficiaries won't see any changes to their Part B premiums, some could see their monthly costs spike.

Blame a provision in federal law that prevents the government from hiking Medicare premiums if Social Security benefits stagnate.

Because of low inflation, federal officials are not planning to give Social Security recipients a cost-of-living increase in 2016.

As a result, about 70 percent of Medicare recipients must be "held harmless" from premium increases. And those who are not shielded — including new enrollees and higher-income enrollees who already pay higher premiums — will shoulder all of the projected premium increase.

So, while the standard Part B premium will remain $104.90 per month for individuals with less than $85,000 in annual income and couples with less than $170,000 in annual income, higher-earning enrollees currently paying $146.90 per month will likely find themselves paying $223 per month, according to the Boston College analysis. The monthly premiums for individuals earning more than $214,000 are likely to increase from $335.70 to $509.80.

It was not immediately clear how many Floridians would be affected.

Some groups, including AARP, want Congress to step in.
"AARP continues to work with Congress to mitigate the impact of increases in Part B premiums on beneficiaries," said Ariel A. Gonzalez, the organization's director of health and family advocacy policy. "We remain hopeful that Congress will act to remedy the situation before the end of the year."

http://home.tampabay.com/news/aging/...eniors/2246523

No benefit increase for Social Security next year