Another year is almost over, and for those of you on Medicare, you know that usually means change - and not always good change but a rise in costs. Medicare changes almost every year, so here is what you need to know about the cost changes in 2017.
Why do costs go up?
Every year, the cost of Medicare to the government and insurance companies typically goes up, and therefore they have to pass on those costs to participants like you in the form of higher premiums and deductibles.
So what will the changes be?
Most Medicare recipients get Part A (or hospital insurance) covered without paying anything because they collected credits for Medicare while they were working. BUT, if you didn't collect enough credits, you may have to pay a premium for Part A of up to $413 per month, just $2 higher than the max in 2016.
Deductibles and coinsurance payments for Part A will also go up unfortunately. Here's a quick breakdown of the price increases:
Hospital Deductible: $1316 (up $28 from 2016)
Coinsurance for days 61-90 of hospital stays: $329 (up $7)
Coinsurance for days 91 on : $658 (up $14)
Coinsurance for skilled nursing facility stays: $164.50 (up $3.50)
Part B will also see price increases in the coming year. Your deductible for visits to the doctor and outpatient services goes up $17 to $183/year.
As you may know if you're already on Medicare, you have to pay a premium for Part B. The standard premium for Part B is going up to $134/month next year, up over $12 from 2016. Your actual payment may vary based upon whether you qualify for the hold-harmless rule (speak to one of our agents for more info). On average, if you qualify, you may pay around $109/month for your part B premium. And if you're considered a high-income individual, you will have to pay more than the standard premium, up to $428.60 for those making over $214,000 yearly.
What to do if this concerns you?
Speak to one of our agents ASAP! We take the time to look at your budget and find you the plan that will work best with your needs.