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December 7, 2015

2016 Medicare Premiums and Deductibles (article)

The Centers for Medicare & Medicaid Services released the 2016 premiums and deductibles for the Medicare Part A and Part B programs. 

 

Medicare Part A Premium and Deductible

  • Generally, there is no monthly Part A premium for those with 40+ quarters of Medicare-covered employment.  Individuals who buy Part A will pay up to $411 each month in 2016.
  • Part A deductibles in 2016 will be $1,288 for first 60 days of inpatient care; an additional $322 co-insurance per day for days 61 through 90, and additional $644 per day beyond the 90th day.

 

Medicare Part B Premium and Deductible

  • The annual deductible for Part B beneficiaries will increase from $147 to $166 in 2016.
  • With regard to Part B premium, because there was no Social Security cost of living increase for 2016, the monthly premium for most individuals with Medicare Part B will remain the same as last year ($104.90).  The amount of monthly premium is adjusted based on income – see chart below:

Beneficiaries who file an individual tax return with income:

Beneficiaries who file a joint tax return with income:

Income-related monthly adjustment amount

Total monthly premium amount

≤ $85,000

≤ $170,000

$0.00

$121.80

>$85,000

and

≤ $107,000

> $170,000 and

≤ $214,000

48.70

170.50

> $107,000 and

≤ $160,000

> $214,000 and

≤ $320,000

121.80

243.60

> $160,000 and

≤ $214,000

> $320,000 and

≤ $428,000

194.90

316.70

> $214,000

> $428,000

268.00

389.80

 

Part B premiums for individuals who are married, live with their spouse at any time during the taxable year, and file a separate return are:

 

Beneficiaries who are married and lived with their

spouse at any time during the year, but file a separate tax return from their spouse:

Income-related monthly adjustment amount

Total monthly premium amount

≤ $85,000

$0.00

$121.80

> $85,000 and

≤ $129,000

194.90

316.70

> $129,000

268.00

389.80

 

 

Medicare Parts C and D monthly premiums vary by plan.

 

Additional information about Medicare premium and deductibles is available from Medicare’s 2015 & 2016 Costs at a Glance and CMS press release



The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.  

 

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