Understanding Medicare Part B Rising Premiums

You might have been hearing about a possible rate increase for some Medicare subscribers. There have been a number of very confusing newspaper articles over the last several days.

Unless some sort of political deal is struck over the next few weeks, about 30% of Medicare beneficiaries will receive significant Part B rate increase for 2016. These increases will range from $54.40/month for incomes of $85,000 ($170,000 per couple) to $174.10/month for incomes over $214,000 ($428,000 per couple).

About 70% of you will have no increase.

You will have no increase if:

  1. You are currently enrolled in Medicare; and
  2. You are collecting Social Security benefits and the current Part B premium is being deducted from you check; and
  3. Your income is less than $85,000 ($170,000 per couple).

The 30% of you that are projected to have the increase primarily fall into 3 categories:

  1. You have not yet started your Medicare benefits, but plan on doing so in 2016.
  2. You are covered by Medicare, but are not yet collecting Social Security benefits.
  3. Your annual income is over $85,000 ($170,000 per couple).

Remember that these potential increases are not yet official. There is tremendous political pressure to avert any increase, particularly for incomes under $85,000 ($170,000 per couple). We will keep you posted.

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