Budget Deal Averting Steep Medicare Part B Premium & Deductible Increases Signed Into Law

Senior Moments Redux, in October’s B&B newsletter, sounded an alarm about a 52 percent increase coming up in 2016 for Medicare Part B Premiums.

Thought you’d like to hear that on Monday, November 2, 2015, President Obama signed into law the Bipartisan Budget Act of 2015.  This wide-ranging budget agreement includes provisions that will mitigate, but not eliminate, Medicare Part B premium increases for some and Medicare Part B deductible increases for all.

In short, the Budget Act will keep 2016 Part B premiums for those who are not “held harmless” – roughly 30% of the Medicare population – to approximately $120 per month. Similarly, the Act will keep the 2016 Part B deductible for everyone to roughly $167 per year. Absent this Congressional action, these figures would have been significantly higher. The costs of keeping these amounts down will be repaid by beneficiaries over a number of years through an addition, or surcharge, to their monthly Part B premiums.

The figures above are estimates since the Centers for Medicare & Medicaid Services (CMS) has not yet released the final 2016 Part A and B premium, copay and deductible amounts.