Medicare Numbers for 2016 #Medicare2016

            The Centers for Medicare and Medicaid has announced 2016 numbers for Medicare premiums, deductibles and coinsurances. Once again, the basic Medicare Part B premium will remain the same at $104.90.  That number has not changed for the past 3 years.

            However, approximately 30% of beneficiaries will receive an increase in their premiums. They include people enrolled in Medicare but not yet receiving Social Security #SocialSecurity2016, new Medicare enrollees, seniors who have greater than $85,000 of income per year and those who are eligible for both Medicare and Medicaid.

            In 2016 the Part B premium will increase to $121.80 per month for those individuals not subject to the rate freeze.  Individuals with income between $85,000 and $107,000 will pay $170.50, those with income up to $160,000 will pay $243.60, those with income up to $214,000 will pay $316.70 and those over $214,000 will pay $389.80 per month.

            Income is based on 2014 income tax returns and specifically the modified adjusted gross income number.  If you have taken a lump sum from your IRA or otherwise received a one time amount that is counted as income and that has pushed your income to a higher level than normal, you can expect to be affected by the premium increase.

            Here are some other new numbers.  Medicare pays for up to 100 days of rehab care in a nursing home with days 21 to 100 requiring recipients to make a coinsurance payment.  That payment will be $161 per day in 2016, up from $157.50.  The co-payment for days 61 to 90 of a hospital stay will increase from $315 per day to $322 per day and for days 91 and beyond it will go from $630 per day to $644 per day.  For Medicare Advantage enrollees the average premium will decrease slightly from $32.91 to $32.60 in 2016.