Senate passes Budget Bill today - Medicare Impacts for 2016

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.
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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. 
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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.
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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