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Higher Earners Medicare Premiums are facing some steep hikes!

Wealthier beneficiaries can see as high as a 22% increase for Part B costs was projected by officials. Projected Medicare cost increase must be spread among only 30% of healthcare beneficiaries.

Next year almost one third of beneficiaries receiving Medicare will be facing steep increases in insurance premiums. This is a result of a policy which under specific circumstances will require some of the beneficiaries to carry the weight of the rising cost which will include the higher earners.

In a report government health care plan trustees had projected premiums will rise as high as 22% for the wealthier beneficiaries who have Medicare Part B which is used to cover different types of outpatient care and doctor visits.

This projected increase is a result from rules intersecting; rules that govern Medicare and Social Security.  There is a Social Security Act (Hold Harmless) provision in which Medicare is not allowed to pass premium increases along that are greater than what’s received through Social Security annual cost of living to participants. 70% of beneficiaries qualifying for the hold harmless treatment for 2017 will not receive increases in premiums that are greater than the dollar increase for their Social Security.

So Medicare now spreads as much as they can of this projected increase in costs to the remaining 30%. So for 2017 those paying $121.80 per month would be charged $149 each month for Medicare Part B in 2017 should the predictions of the trustees come to pass.

Trustees project that individuals who earn between $85,001 – $107,000 and that couples who earn between $170,001 – $214,000 would then have their monthly premiums for 2016 go from $170.50 per person to around $204.40 for 2017. The those who earn even more than $214,000 and or couples earning $428,000 for couples then the increase will be around $467.20 per month which in 2016 is $389.00. So as you can see higher earner will pay more.

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