Thursday, May 5, 2016

Question: What Are My 2016 Medicare Costs?

Medicare Costs For Part A (Hospital Insurance)
Part A Monthly Premiums

The Cost for most people for Part A premium is zero because either you or your spouse paid Medicare taxes while working 10 or more years in the United States. If you have to purchase Part A, you will pay up to $411 every month.

Hospital Stays

For 2016, you will pay

§  $1,288 deductible per benefit period
§  $0 for the first 60 days of each benefit period
§  $322 per day for days 61–90 of each benefit period
§  $644 per “lifetime reserve day” after day 90 of each benefit period
(up to a maximum of 60 days over your lifetime)

Skilled Nursing Facility Stays

For 2016, you pay

§  $0 for the first 20 days of each benefit period
§  $161 per day for days 21–100 of each benefit period
§  All costs for each day after day 100 of the benefit period

Medicare Costs For Part B Monthly Premiums
You will pay a Part B premium each month. The majority of people will pay the standard premium amount of $121.80. However, the cost of Medicare Part B is based upon your modified adjusted gross income of your income filing tax status from 2 years prior. So, if your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you may pay more.

Some of the items that contribute to your modified adjusted gross income include any money earned through wages, interest, dividends from investments, capital gains and a few other items. Social Security will send you a letter once a year around December or early January to tell you what your costs are for the upcoming year.

Your Part B premium will be deducted from your social security check or billed to you quarterly if you are not yet enrolled in Social Security income benefits.
To determine your Medicare cost, review the table below. It shows the amount that you will pay in 2016 for Part B, per this chart reproduced from the website.

If you have questions about your Part B premium, call Social Security at 1‑800‑772‑1213. TTY users should call 1-800-325-0778. If you pay a late enrollment penalty, these amounts may be higher.

The Part B Deductible Is $166 per year

Medicare Prescription Drug Plans (Part D) Premiums

The cost of Medicare Part D is also based upon the modified adjusted gross income of your income filing tax status from 2 years prior. The chart below shows your estimated prescription drug plan monthly premium based on your income. If your income is above a certain limit, you will pay an income-related monthly adjustment amount in addition to your insurance plan's premium.

To Calculate a Penalty:

2015 Part D National Base Beneficiary Premium—$33.15

This amount is used in the calculation to estimate the Part D late enrollment penalty and the income-related monthly adjustment amounts listed in the table above. The national base beneficiary premium amount can change each year. See your Medicare & You handbook or visit for more information.

If you find all this a little confusing don’t worry, Sonia can help you. Many people have found that Medicare and a supplement costs much less than private insurance policies they had prior to Medicare. 

Call Sonia Ashford: 817-689-3536

Ashford Insurance Services, LLC

Sonia Ashford is an independent insurance agent in the Medicare field, and has delivered hundreds of speeches about turning 65, Medicare Advantage and Medicare supplement insurance to consumers in Tarrant County. A respected agent within the Medicare insurance industry, she is the owner of Ashford Insurance Services. Visit Sonia's agency website to learn more about how she can help you with your Medicare decisions.

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