Medicare Part B Costs in 2016

How to Budget Your Health Expenses

Part B Costs 2016
Part B premiums increase for some seniors but not all. Rob Melnychuk/DigitalVision/Getty Images

Congress managed to avoid a 50 percent premium increase for new Medicare beneficiaries. It did not prevent cost increases overall. Here is what to expect in 2016.

Part B Deductible

The annual deductible for Part B will be $166 in 2016, a 13 percent increase from $147 in 2015.

Part B Premiums

In 2016, Part B premiums will rise by 16 percent for all people new to Medicare, those on Medicare but not Social Security and those who are on both Medicare and Medicaid.

2016 Part B Premiums for Individuals
IncomeYour 2016 CostsChange from 2015
Less than $85,000$121.80 per month

$16.90 increase per month

$202.80 increase per year

$85,000 - $107,000$170.50 per month

$23.60 increase per month

$283.20 increase per year

$107,000 - $160,000$243.60 per month

$33.80 increase per month

$405.60 increase per year

$160,000 - $214,000$316.70 per month

$44.00 increase per month

$528.00 increase per year

More than $214,000$389.80 per month

$54.10 increase per month

$649.20 increase per year

2016 Part B Premiums for Married Couples
IncomeYour 2016 CostsChange from 2015
Less than $170,000$121.80 per month

$16.90 increase per month

$202.80 increase per year

$170,000 - $214,000$170.50 per month

$23.60 increase per month

$283.20 increase per year

$214,000 - $320,000$243.60 per month

$33.80 increase per month

$405.60 increase per year

$320,000 - $428,000$316.70 per month

$44.00 increase per month

$528.00 increase per year

More than $428,000$389.80 per month

$54.10 increase per month

$649.20 increase per year

2016 Part B Premiums for Married People Filing as Individuals
IncomeYour 2016 CostsChange from 2015
Less than $85,000$121.80 per month

$16.90 increase per month

$202.80 increase per year

$85,000 - $129,000$316.70 per month

$44.00 increase per month

$528.00 increase per year

Greater than $129,000$389.80 per month

$54.10 increase per month

$649.20 increase per year

People who were already on both Medicare and Social Security prior to 2016 will not see a rise in their Part B premium rates. This is because there was no rise in the Social Security cost of living adjustment (COLA) for 2016. This protects those on Social Security from unfair rises in healthcare costs. The 2015 Part B premium rates continue in the above categories at $104.90, $146.90, $209.80, $272.70 and $335.70 per month for these beneficiaries.

For those who are dual eligible, Medicaid will pay their Medicare premiums. They will be charged the higher Part B premium rates.

Part B Premiums and Medicare Advantage

You can elect to have Original Medicare (Parts A and B) or a Medicare Advantage plan (Part C). Medicare Advantage plans are offered by private insurance companies and will cover everything that Original Medicare offers and more.

Even if you decide on a Medicare Advantage plan and pay premiums to the insurance company, you still have to pay Part B premiums to the government. You must take the added cost into consideration.

Part B Coinsurance

There will be no increase in Part B coinsurance. Medicare pays 80 percent and you pay 20 percent with the exception of preventive screening tests. As long as your doctor accepts assignment, your preventive screening tests will be free.

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