Proposed New Medicare Rates in 2016

[midwestbroker]

There has been a lot of concern over the price hikes for Medicare in 2016, but it looks like the increases will not be as bad as proposed.

As it was proposed, under the hold-harmless cause, 30% (mostly new Medicare beneficiaries) of beneficiaries would be paying $159.30 for their Medicare Part B premium in 2016. Plus, the Medicare Part B deductible would raise to $223, from $147.

However, under the new tentative budget deal, that may be eased. They are now proposing that Medicare beneficiaries who are not protected by the hold-harmless clause to pay about $120 per month in Medicare Part B premium and the Part B deductible would be $167.

The budget deal is still tentative...we will wait and see.

 

[Chazm]

Quick dumb question. I've always told clients that they can't have an increase without an increase in SS. But I have a client who is starting Part B in December but not taking SS yet and she was told that only people who are taking SS are protected from getting the increase in part b premium. This is incorrect, right?

 

[wehotex]

Quick dumb question. I've always told clients that they can't have an increase without an increase in SS. But I have a client who is starting Part B in December but not taking SS yet and she was told that only people who are taking SS are protected from getting the increase in part b premium. This is incorrect, right?

Your client is correct. 3 classes of ppl that are affected: those on Part B without receiving SS benefits, those on Medicare Savings Programs/Medicaid and those who start Part B in 2016.

 

[alldaytuesdays]

Your client is correct. 3 classes of ppl that are affected: those on Part B without receiving SS benefits, those on Medicare Savings Programs/Medicaid and those who start Part B in 2016.

Also not protected by "hold harmless" provision: those paying higher Part B premiums already due to high MAGI (>85K for indiv; >170K for couples)

 

[Chazm]

Your client is correct. 3 classes of ppl that are affected: those on Part B without receiving SS benefits, those on Medicare Savings Programs/Medicaid and those who start Part B in 2016.

Ok thanks. Can't believe I was in the dark about that. I always just thought it was, you're on Medicare? You're not affected

 

[midwestbroker]

In order to be considered for the hold-harmless rule, you have to be on Medicare for at least November and December and have the Medicare Part B premium auto deducted from your SS check.

I am not sure if that would affect people aging in December as they would only have one month. I would think they would be considered under the hold-harmless but I cannot say 100%.

 

[Duaine]

There has been a lot of concern over the price hikes for Medicare in 2016, but it looks like the increases will not be as bad as proposed.

As it was proposed, under the hold-harmless cause, 30% (mostly new Medicare beneficiaries) of beneficiaries would be paying $159.30 for their Medicare Part B premium in 2016. Plus, the Medicare Part B deductible would raise to $223, from $147.

However, under the new tentative budget deal, that may be eased. They are now proposing that Medicare beneficiaries who are not protected by the hold-harmless clause to pay about $120 per month in Medicare Part B premium and the Part B deductible would be $167.

The budget deal is still tentative...we will wait and see.

Info on the "Deal" Budget Deal Tackles Disability, Halts Medicare Premium Increase - WSJ

 

[beachbum2012]

In order to be considered for the hold-harmless rule, you have to be on Medicare for at least November and December and have the Medicare Part B premium auto deducted from your SS check.

I am not sure if that would affect people aging in December as they would only have one month. I would think they would be considered under the hold-harmless but I cannot say 100%.

The way I understand it, T65s in December currently drawing SS income would be included in hold harmless. The rule is 2-part: 1st, you have to be entitled to SS income the months of November and December. Since you get a SS check for the previous month of entitlement, then you have to receive a SS check in the month of December and January. The 2nd part is that you have to have the Part B premium deducted from these said checks. Medicare Part B premiums are deducted from the check of the current month.

So the way I understand it, a December T65 who's already on SS income will have their Part B premium deducted from their checks for November and December in December and January.

Also, I thought the $159.30 was already a done deal, but the Part B premium was still up in the air?

 

[midwestbroker]

That is the way I was reading it as well, but with everything still being proposed, I didn't want to be absolute about it.

The $159.30 was the way the cards fell since there was no COLA, but the Medicare rates had not been finalized, so there was time to change it. AARP said you better fix this along with some other senior lobbying groups.

So, the quick fix is to have Medicare borrow money from the general fund and then repay it back over the next 5 years...

 

[axeman462]

That is the way I was reading it as well, but with everything still being proposed, I didn't want to be absolute about it.

The $159.30 was the way the cards fell since there was no COLA, but the Medicare rates had not been finalized, so there was time to change it. AARP said you better fix this along with some other senior lobbying groups.

So, the quick fix is to have Medicare borrow money from the general fund and then "repay" it back over the next 5 years...

you forgot the quotation marks around repay. I fixed it for you