Medicare Blog: Moorestown, Cranford NJ

Senate passes Budget Bill today - Medicare Impacts for 2016

10/30/2015

You may have read today that the Senate passed the new Budget deal boosting spending for the next two years. The deal still requires the signature of President Obama which should happen in the next few days.

We do not yet have access to the entire bill, but our understanding of the changes as it relates to Medicare are below. We will publish an update if things change.

Medicare Part B Premiums increase 15% in 2016

The prior proposals for Part B Premium increases were very high (up to 52% increase). A significant amount of lobbying was done in Washington to reduce the increase and minimize the impact. The net result appears to be a 15% increase rather than a 52% increase. These are unofficial rates for 2016.

Part B Premiums and "Hold Harmless" Provision

The Part B premium increases will not affect everyone on Medicare. There is a "Hold Harmless" provision which protects individuals that were:

on Medicare Part B in 2015 AND
in the first income tier (paying $104.90/month) AND
taking Social Security payments

Since the Cost of Living Adjustment (COLA) for Social Security is 0% in 2016, these individuals will NOT see an increase in their Part B premiums in 2016 and will continue to pay $104.90/month.

All other Medicare beneficiaries will need to pay the new Part B premium rates.

Part B Deductible increases to $167

In 2015, the Part B (Outpatient services) Deductible was $147 for the year. This deductible was also projected to increase about 50% to $223, based on the Congressional Budget. However, the deal that passed softened the blow with only a $20 increase to $167. This increase is not protected by the "Hold Harmless" provision so it will impact all Medicare beneficiaries.

There are three Medicare Supplements that pay for the Part B Deductible. If you have one of these plans, you will still be covered for the Part B deductible.

Plan F
Plan C
Plan J (no longer available for new beneficiaries)

The premiums for these plans will need to increase to offset the increased expense of the Part B deductible increase, so we are expecting a higher % increase than normal on these plans.

Part D (Prescription Drug Coverage) Changes in 2016

Here is an article with some details about changes to Medicare Part D coverage in 2016. Open enrollment started a couple of weeks ago and will end December 7. Have you reviewed your prescription drug coverage for 2016?

In our FREE guide for the Top 5 Biggest Mistakes people make on Medicare, the #2 biggest mistake is not properly analyzing your prescription drug coverage. Don't make this mistake or you could end up paying thousands more than you should for drug coverage.

Use a Plan G to offset increased Premium expenses

This is a good opportunity to review your Medicare Supplement and Prescription Drug coverage to ensure you have the best value. You should learn about a Plan G which provides a great value and could save you hundreds of $ per year or more! Also, Plan F is no longer accepting new entrants starting January 1, 2020, which will impact premiums on Plan F and is another reason to look into a Plan G.

Call now to see if you are eligible for a Plan G!
1-856-866-8900 or 1-908-272-1970

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Is Plan G still a good option if the Part B deductible increases?

10/9/2015

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Let me start by saying Plan F and Plan G are both great options. Plan F is still the most popular plan and provides the most comprehensive coverage available. Plan G is very similar to Plan F and a great value.

The only difference with Plan G compared to Plan F is that you have to pay the Part B deductible ($147, in 2015) and you will save at least $200/year in premiums; in some cases $500+/year in premium savings with a Plan G.

Analysts are currently projecting a 50% increase in the Part B deductible up to $223 per year, starting in 2016. This increase is not official yet, but it seems like it may be too late to stop this increase from happening.

So, is Plan G still a good value if the deductible increases to $223? Yes, it is. Here are some key reasons why.

Plan F will need to cover the increased deductible - If the Part B deductible increases, Plan F will need to cover up to $76 in expense per subscriber that Medicare is no longer covering. Thus, the overall expenses will go up for Plan F, which will drive the premiums higher for Plan F.
Plan G will have less expenses - the opposite is also true for Plan G. Plan G will have up to $76 less expense to cover for each policyholder. Plan G premiums will likely still increase due to age and medical inflation, but this reduction in coverage will help offset some of the costs and mitigate the increase in Plan G premiums.
Plan F will not be available for new subscribers in 2020 - As mentioned in an earlier article, Plan F is going away in 2020. This will also drive additional increases in Plan F premiums, which cannot be understated.

I spoke with a potential customer (76 year-old male) this week who is still on an old Plan design (Plan J). The Federal government stopped allowing new customers in Plan J in 2010. Plan J now provides the same comprehensive coverage as a Plan F. (Plan J used to provide a couple of minor additional benefits but they are no longer included).

This individual is paying over $1,500 per year higher with his Plan J than a Plan F which provides the same benefits. The reason Plan J premiums are so high is because they have not had any new entrants into Plan J in the last five years so the youngest individual in Plan J is 70 years old. Additionally, some people in good health have left Plan J to get lower rates with other plans which drives up the costs per subscriber even higher in Plan J.

We are actively working with this individual to get setup with either a Plan F ($1,500/year savings) or Plan G ($2,000/year savings) and he will need to go through Medical Underwriting to be approved.

This is a prime example of the type of impact that could occur with Plan F after the year 2020, when Plan F is no longer available for new beneficiaries.

In summary, we still believe Plan G will be a great value if the Part B deductible increases and you will may even see increased savings with Plan G compared to Plan F in the future!

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2016 RX Cards Available Now!

10/8/2015

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Now is the one time-period per year that you can review and change your Medicare Part D Prescription Drug Coverage.

In our FREE guide for the Top 5 Biggest Mistakes people make on Medicare, the #2 biggest mistake is not properly analyzing your prescription drug coverage. Don't make this mistake or you could end up paying thousands more than you should for drug coverage. Read More Here about changes in 2016 drug plans and a real-life mistake that would have cost over $8,000.

As of this week, the new cards are available to start reviewing and analyzing to determine the best card to select.

You cannot enroll until October 15, but you can do the research to determine the right card based on your specific list of drugs.

We are here to help you, as we have helped over 15,000 other Medicare customers over the last seven years.

For all of our Medicare Supplement customers we offer a free annual analysis of the RX plan to ensure each individual gets the right plan each year. We have a special promotion right now for to get a Free RX Analysis even if you are not an existing customer. We will also shop around the top carriers for a Medicare Supplement and provide the best quotes available for your specific situation.

Call now to see if you could save hundreds per year or more!

1-856-866-8900 or 1-908-272-1970

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Senate passes Budget Bill today - Medicare Impacts for 2016

Medicare Part B Premiums increase 15% in 2016

Part B Premiums and "Hold Harmless" Provision

Part B Deductible increases to $167

Part D (Prescription Drug Coverage) Changes in 2016

Use a Plan G to offset increased Premium expenses

Is Plan G still a good option if the Part B deductible increases?

2016 RX Cards Available Now!

Justin Lubenow

Archives

Categories

Senate passes Budget Bill today - Medicare Impacts for 2016﻿

Medicare Part B Premiums increase 15% in 2016

​Part B Premiums and "Hold Harmless" Provision

Part B Deductible increases to $167

Part D (Prescription Drug Coverage) Changes in 2016

Use a Plan G to offset increased Premium expenses

Is Plan G still a good option if the Part B deductible increases?﻿

2016 RX Cards Available Now!

Justin Lubenow

Archives

Categories

Senate passes Budget Bill today - Medicare Impacts for 2016

Part B Premiums and "Hold Harmless" Provision

Is Plan G still a good option if the Part B deductible increases?