Medicare Cost Changes for 2016

By Elie Harriett

Medicare recently posted the costs for 2016 for parts A & B.  Every year, Medicare’s deductibles and cost sharing change a bit.  Here is a breakdown of these changes for the coming year.

Medicare Part B’s deductible is increasing from $147 once a year to $166 once a year.  As always, Medicare Part B has an array of preventative services which do not count towards the deductible and are paid immediately.

Medicare Part A’s hospital deductible is increasing next year, from $1,260 per occurrence, to $1,288 per occurrence.  Note that, unlike Medicare Part B, the part A deductible is an occurrence deductible, not an annual deductible.  Meaning that deductible could be charged multiple times in a year.

If you are in a hospital beyond 60 days, Medicare Part A will begin charging an increased daily co-pay.  Days 61-90, the charge will be $322 per day, and if you are confined to a hospital even longer, next year the daily co-pay in a hospital is $644.  That final charge, however, is known as a “lifetime reserve,” and are days 91-150 of your hospital stay.  Medicare only approves that stay once in a lifetime.

The skilled nursing facility co-pays are increasing as well.  As was the case in 2015, the first 20 days are fully covered with no co-pays.  However, days 21-100 will have a co-pay of $161 per day, up from $157.50 per day, in 2015. 

It is important to know that, while these costs are high and intimidating, most people consider covering them with secondary insurance, such as a medicare supplement.  If you have such secondary coverage, your costs should be less than what was just said in most or every area.  If you have a Medicare Advantage plan, look at your plan’s evidence of coverage or call your agent to ask them how the Medicare costs are going to impact you.

For more information specific to your needs, contact the local social security office, Medicare, or a knowledgeable insurance advisor.  If you live in OH, WV, or KY, contact us for assistance in every area of your Medicare insurance needs.