50% Rise in Part B Premium for some?

[Independent]

Although it is a 50% bump, if I read the article correctly, it is only $54.30 a month for someone making over $85K a year.

I really do not see the issue. It is a small pittance for someone making $85K a year. Medicare is still a terrific subsidy to retirees.

It is also $54.30/month for retired people who are deferring their SS start dates past 65. These people pay Medicare premiums directly, and are not eligible for the premium freeze.

In our case, we live on about $55k for a couple, quite a bit less than $170k trigger for a couple. We will pay the increase on my Medicare premium, but not my wife's, because she has started SS benefits and I haven't.

 

[MBSC]

2016 Medicare Advantage premiums are expected to see little change.

According to the Centers for Medicare and Medicaid Services, average monthly premiums across the country will decrease by $0.31.
CMS also indicated that Medicare Advantage enrollment is expected to rise for the sixth straight year, and that more plans will offer supplements such as dental, vision and hearing benefits.

Source: http://lancasteronline.com/news/loc...cle_a7076f52-60c0-11e5-bf30-6309db2aba4f.html

However, this will come at the expense of higher cost sharing for some.

An analysis of the Medicare Advantage program suggests pressure to keep premiums low may also be affecting out-of-pocket costs in that market.
In the ordinary Medicare Advantage plan, the number of zero-premium plans with an annual out-of-pocket cost maximum of $3,000 or less will fall 18 percent, to 299.
The number of zero-premium plans with an annual out-of-pocket maximum of $4,000 or less will fall 37 percent to 2,217.

Source: Medicare Advantage plan count rises | LifeHealthPro

 

[Car-Guy]

When enough SS COLA finally hits, everyone will be paying the same amounts once again. It's not a case where the unfortunate 25%-30% see a 50% bump and then see future increases based on a percentage of that bumped amount. It's a spike, not a step.

I'm sure the unfortunate 25-30% will be okay with paying more for the same services because of the greater wisdom from our elected officials. I'm also glad the ACA is helping to keep medical cost in check so well. If not, I guess the increase would be 100% or more.

 

[Walt34]

I haven't seen this answered in any of the articles I've read on this increase, and haven't seen it in the thread.

Exactly when does the increase take effect?

I was planning on applying for SS at FRA next spring, but if the Medicare increase takes effect January 1st, it may be better to apply in December and take the small hit.

So - anybody know when?

 

[MissMolly]

I haven't seen this answered in any of the articles I've read on this increase, and haven't seen it in the thread.

Exactly when does the increase take effect?

I was planning on applying for SS at FRA next spring, but if the Medicare increase takes effect January 1st, it may be better to apply in December and take the small hit.

So - anybody know when?

Under current law, you would need to have both Medicare and SS benefits start by November 2015 in order to be protected by the "hold harmless" provisions. However, nothing has passed yet, so this is all still up in the air.

 

[Walt34]

Ah, thanks, not the first time I misunderstood something. I'm on Medicare now but not SS yet.

 

[omni550]

Kiplinger has a few ideas for avoiding the Part B increase (if one is announced) that may apply to some here.

Who Has to Pay the Hike in Medicare Premiums-Kiplinger

omni

 

[timo2]

According the this article the current tentative budget agreement might address this situation
"The budget agreement would extend the “hold harmless” provision of the Social Security Act in 2016 to those affected by the increase, so that they will pay $123.70 per month (including a surcharge) next year.

Budget Deal Spares Feds’ Pay and Benefits - Pay & Benefits - GovExec.com

 

[athena53]

But on full retirement, assuming our AGI consists only of ordinary dividends, social security income and required minimum distributions, can medicare premiums still be deducted?

Or are they deductible only against self-employment income?

I sure hope they're deductible as Medical Expenses, because that's where I deduct them. DH and I are both retired with no wage income, self-employed or otherwise. It's only to the extent that they exceed a % of your AGI (7.5% for us since DH is over 65), but between all of our insurance premiums as well as unreimbursed medical and dental costs, we get some tax benefit from premiums paid.