Not unlike previous years, 2016 has seen a number of changes to the Medicare system. However, two of those will directly impact many San Luis Obispo seniors who rely on Medicare health insurance, and whose monthly income includes social security benefits.
Higher Basic Medicare Premiums
Social Security declared that there would be no cost-of-living adjustment (COLA) for the upcoming year. In the last 40 years, this is only the third time that COLA has not been included in social security payments.
Those who presently have their Medicare premiums withdrawn from their social security payments and are not subject to income-related additional changes will continue to pay $104.90 per month. For all others, including those who pay their Medicare premium directly, and for those with higher income, the new basic premium will be $121.80.
Higher Premiums for Part B Medicare
The premium for Part B of the Medicare health plan, which covers doctor’s visits and outpatient care, has been based on the beneficiary’s income since 2007. This means that those with higher incomes will pay a higher premium for Part B of Medicare in 2016 than they have in past years. This increased premium also affects new enrollees to the Medicare plan. While the 2015 premium was $104.90, the 2016 premium will be $121.80.
In addition, San Luis Obispo Medicare users will see increases in the deductibles and copays for Medicare benefits in 2016.
Questions or Concerns About Medicare?
Many Medicare users are understandably confused and afraid of the financial impact of these changes. However, clients of Susan Polk Insurance can rest assured: we offer comprehensive health insurance plans which cover deductibles and copays, giving Medicare enrollees the protection and assurance they need.
For questions about your Medicare policy, or for more information about plans that can help you save on health-care costs, contact us today and schedule a FREE consultation.