If you are new to Medicare, you may find all of the information regarding benefits and costs to be confusing and overwhelming. Like most insurance plans, Medicare 2016 will only pay a portion of medical costs and you will be responsible for things like premiums, co-pays and deductibles. In this week’s blog, we offer an overview of the costs that you can expect to incur from Medicare in 2016.
Medicare 2016 Costs at a Glance
Medicare Part A requires no premiums so long as you paid sufficient Medicare taxes during your time of employment. Part B, however, does require a premium which was $104. 90 in 2015. There is some uncertainty as to exactly how much costs will go up in 2016 but they are expected to rise by at least 15 percent next year. Again, there is no finalization on Part B premiums yet for 2016. Part D drug plans and most Medicare Advantage (i.e. Part C) plans also charge premiums which depend on the specific plan. Your premiums for Part B and D will be higher if you are single and make over $85,000 or are married and earn over $170,000.
The annual deductible for Part B is projected to increase next year, from $147 in 2015 to $223 next year. If you have supplemental insurance, it may cover your Part B deductible. Some Medicare Part D plans do not require a deductible but for those that do, the cost may not exceed $360 in 2016. Part A only includes a deductible of $1,260 for hospital stays.
In traditional Medicare (Parts A and B), your deductible is 20% of the approved amounts for most Part B services. For Part A, once you have met your hospital stay deductible you pay no additional costs for up to 60 days in the hospital during a single benefit period. Any additional days beyond the 60 might necessitate an additional daily copay.
About Global Premier Benefits
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