2016 Medicare A and B Deductibles and Costs?

[WCMason]

I have received several phone calls from clients who were planning to delay taking Social Security and are wanting to start Social Security early to avoid the likely Part B increase. I do not advise them to do that. It doesn't seem to make sense to me to change their Social Security timing strategy which will affect how much they receive for the rest of their lives in order to avoid what will likely be a one year increase in their Part B premium. Once there is a Social Security COLA everyone will be paying the same amount again. Once they understand that they're only avoiding this temporarily they lose interest.

 

[bluediamond]

I have received several phone calls from clients who were planning to delay taking Social Security and are wanting to start Social Security early to avoid the likely Part B increase. I do not advise them to do that. It doesn't seem to make sense to me to change their Social Security timing strategy which will affect how much they receive for the rest of their lives in order to avoid what will likely be a one year increase in their Part B premium. Once there is a Social Security COLA everyone will be paying the same amount again. Once they understand that they're only avoiding this temporarily they lose interest.

You're right the benefits of waiting still outweigh the increase in the Part B premium if there is one. The congress has been tossing the idea around of stopping the increase. But we all know when our politician's start tossing something around it's like a fumble in a football game.

 

[G.Gordon]

Thanks. I just feel bad for people turning 65 in January and they don't even have how it's going to work available to them, then. haha

What's to feel bad about? It is what it is. The system as worked the same for a long time, numbers in late October or early November.

If they get their panties in a twist over the difference in $104.90 and $160ish, then tell them to plan on $160 and if it comes out less all the better.

 

[yorkriver1]

What was the reasoning behind even thinking about not signing up for a 12/1/15 effective in the 1st place?

I think it seemed reasonable, briefly, to the client, since we are in open enrollment, to have it be starting at the beginning of a calendar year--not a person who has studied the options in detail. Client was looking at the drop down starting month choice block in the online Medicare/SS app that gives the option to start income later than birth month.

We had a short discussion about being sure that starting Social Security income this year instead of age 66 is a long term good idea. The reason for starting at 65, not 66, or even 70, the family needs the income. I emphasized that this is fixed now for life, except for future COLA increases.

The higher earning spouse is a still few months from age 65, and may decide to delay taking benefits until age 66. Thanks WC, for the reminder that the Part B increase is most likely for one year, if passed.

 

[Justin Bilyj]

I thought the part B would be ratcheting up over the next few years...