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2016 Medicare costs

Medicare beneficiaries will face higher Medicare costs in 2016. Several costs, including the Part A deductible, the Part A inpatient hospital stay co-insurance, and the Part B deductible will increase in 2016, according to a Centers for Medicare & Medicaid Services (CMS) news release.

The table below shows which Medicare out-of-pocket costs will change from 2015 to 2016.

Medicare costs 2015 2016
Part A monthly premium Up to $407 Up to $411
Part A inpatient hospital stay deductible (per benefit period) $1,260 $1,288
Part A inpatient hospital stay co-insurance (per benefit period) Days 61-90: $315 per day

Days 91+: $630 co-insurance per each “lifetime reserve day” after day 90

Days 61-90: $322 per day

Days 91+: $644 co-insurance per each “lifetime reserve day” after day 90

Part A skilled nursing facility co-insurance Days 21-100: $157.50 per day Days 21-100: $161 per day
Part B annual deductible $147 $166

 Your Part A costs

Most Medicare Part A costs will increase in 2016. The Part A costs that will increase include:

  • monthly premiums
  • inpatient hospital stay deductible
  • inpatient hospital stay co-insurance
  • skilled nursing facility co-insurance

Please reference the chart above for 2016 cost-specific details.

Your Part B costs

The Medicare Part B premium will remain the same at $104.90 per month for most individuals. The Social Security Administration recently announced that there will be no cost of living increase for 2016. Due to this, most Part B beneficiaries will be “held harmless” from premium increases in 2016, according to the CMS release.

“Our goal is to keep Medicare Part B premiums affordable,” said Andy Slavitt, CMS Acting Administrator. “The premiums for 52 million Americans enrolled in Medicare Part B will be either flat or substantially less than they otherwise would have been.”

Some Part B beneficiaries will have to pay slightly higher premiums. These beneficiaries include those not collecting Social Security benefits, those who are enrolling in Part B in 2016 for the first time, dual-eligible beneficiaries, and those who pay an additional income-related premium. The beneficiaries listed above account for about 30% of all Medicare beneficiaries. They will pay $121.80 per month.

Other Part B costs will either increase or remain the same. The Part B annual deductible will increase to $166 in 2016 ($147 in 2015). The Part B co-insurance will not increase in 2016. You are still responsible for 20% of the Medicare-approved cost of Part B medical services.

Medigap coverage for 2016 Medicare costs

Medicare Supplement insurance policies (also called Medigap plans) will cover some of the 2016 Medicare costs. Each Medigap plan covers different benefits.

The table below shows which Medigap plans will cover certain Medicare out-of-pocket costs in 2016.

Medicare costs Your cost in 2016 Medigap plans with full or partial coverage
Part A inpatient hospital stay deductible $1,288 B, C, D, F, G, K, L, M, N
Part A inpatient hospital stay co-insurance Up to $644 per day All plans
Part A skilled nursing facility co-insurance Up to $161 per day C, D, F, G, K, L, M, N
Part B annual deductible $166 C, F

For more information about Medicare out-of-pocket costs and Medigap coverage, read our Medicare Supplement benefits page.

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