By Tucker Thompson, CSA
2016 Medicare Premiums
“Hold Harmless” Social Security law currently protects about 70% of today’s Medicare recipients by disallowing annual increases in Medicare Part B premiums whenever Social Security determines there won’t be COLA (cost of living increases) in benefit checks for the following year, like 2016.
In years when Social Security checks are given COLA raises, law dictates the government pick up 75% of Medicare’s annual charges and the remaining 25% be divided among all Part B participants. No COLA in 2016, however, means Part B premiums for 70% of Medicare beneficiaries remain the same as last year’s $104.90/month. Thirty percent of beneficiaries share all 25% of the cost for any Part B premium increases. So who could that 30% be?
- New Medicare enrollees in 2016, after premium increases are effective.
- Beneficiaries with MAGI greater than $85,000 for singles and $170,000 for couples.
- Beneficiaries who don’t have their Medicare premiums deducted directly from their Social
Security retirement deposits.
- Certain public sector retirees.
Hospital Charges that Can Slam You
Many Medicare patients admitted to hospitals today, even those seriously ill, receiving various tests, treatments and medications, are going home to huge hospital bills they thought were covered by Medicare or their insurance. Instead of being admitted as “Inpatient” for overnight stays, more patients are quietly being classified “Observation/Outpatient Status,” subsequently getting charged for 20-100% of the bills normally paid by Medicare Part A if admitted as “Inpatient.” If additional a Skilled Nursing/Rehab stay is required, Medicare requires a three-day hospital Inpatient stay before covering any of that bill too!
Be Proactive:
- Before check-in, ask or call your doctor to see if you’re being checked in under “Observation/Outpatient” or “Inpatient” status. Ask when and how that “status” could change.
- Have your spouse, family, or friend check daily to confirm your “admitting” status.
- If admitted under “Observation Status,” ask your doctor about help getting that changed.
- Ask if there’s comparable, alternative care that would be covered by your insurance.
- Visit: http://www.medicareadvocacy.org/medicare-info/observation-status
Tucker Thompson, CSA, has worked in the insurance field for over 23 years in Long-Term Care, Medicare Supplements, Medicare Advantage Plans, Prescription Drug Plans, and Life Insurance policies.
