Medicare Premiums 2016 | Medicare Costs in 2016

With the open enrollment started on October 15, many people wonder what the Medicare premiums, cost, and rates will be for 2016.

“It’s important to shop around,” said Tom Kornfield, vice president of Avalere Health, a Washington, D.C.-based strategic advisory firm. The average Part D drug premium will rise to a projected $41.34 a month in 2016, inching above $40 per month for the first time, according to an analysis by Avalere Health that included basic plans and so-called “enhanced” plans that may offer more comprehensive coverage.

Medicare rates and costs for 2016 for initial deductible will increase by $10 to $320. For initial coverage limit it will increase from $2, 850 to $2,960. Out-of-Pocket Threshold will increase from $4,550 to $4, 700. Coverage Gap (donut hole) will begin once you research your Medicare Part D plan’s initial coverage limit, which is $2,960 and will end when you spend $4,700.

In 2016, Medicare Part D enrollees will receive a 55% discount on the total cost of their brand name drugs purchased while in the donut hole.

The 50% discount paid by the brand-name drug manufacturer will still apply to getting out of the donut hole, however the additional 5% paid by your Medicare Part D will not count toward your TrOOP. Enrollees will pay a maximum of 65% co-pay on generic drugs purchased while in the coverage gap.

The average monthly premiums for Medicare plans in 2015 will be $33.90, which is an increase of 9.5%, or $2.94, over the current year. However, as a result of more people seeking out lower-cost plans, CMS estimates, which the average premium will hike will actually be $1.30 per month.

For some 30% of beneficiaries – Part B premiums stand to rise by as much 52% for 2016. This includes new beneficiaries, high-income beneficiaries already subject to higher Part B premiums, and Medicare recipients who have not yet begun to collect Social Security. If you fall under this group you are not protected under the so-called hold harmless provision of federal law that limits the dollar increase in the Part B premium to the dollar increase in an individual’s Social Security benefit, to prevent a scenario where an individual’s Social Security check would decline from one year to the next.

And CMS anticipates that just more than 60% of beneficiaries who will opt for private coverage will see no Medicare premium increases in 2016. Beneficiaries in every state except Alaska can opt for a Medicare Advantage plan in 2016 instead of the traditional fee-for-service program.

Medicare premiums 2016 | Medicare Costs 2016 | Medicare Rates 2016 | Advantage Plans Costs 2016