Some Medicare Rates Changing

The Medicare program has announced new rates for 2016, with the monthly Part B premium for physicians and related services remaining $104.90 for most. That’s due to a “hold harmless” provision that prevents increases for most enrollees in a year when there is no COLA increase to Social Security benefits. Those not protected by that provision–including new enrollees for 2016 and those who don’t pay Medicare premiums from Social Security benefits (a group that includes most of those retired under CSRS)–will pay $121.80. That’s nearly $40 a month less than they would have paid but for a recent budgetary agreement. Those with annual taxable incomes above $85,000 for single filers and $170,000 for joint filers also pay at the higher basic rate–plus, they are subject to surcharges that range from about $50 to $270 depending on income. The Part B annual deductible will rise from $147 to $166 for all enrollees. In Part A, which covers hospitalization and related costs, the deductible will rise from $1,260 to $1,288 for the first 60 days and also for longer periods.