The Medicare system helps a lot of seniors, but it isn’t an easy system to navigate. With all the various parts, premiums, deductibles and limits, it gets confusing—fast. Below, we’ve created a simple breakdown of some of the cost changes you can expect in 2015. Please note that these are average changes and that your income and chosen plans will have a bearing on whether you experience them.
Medicare Cost Changes
- Part B premium:
- Most people will still pay $104.90 per month. However, depending on your 2013 income, you may pay as much as $335.70.
- Part B deductible:
- This remains the same at $147 per year.
- Part A premium:
- Those who buy Part A will pay $407 each month, although most will have no premium.
- Part A hospital inpatient deductible:
- $1,260 deductible for the benefit period
- $315 coinsurance for days 61-90
- $630 coinsurance days 91 and beyond for each “lifetime reserve day”
- Part D premiums:
- These vary by plan, but you can expect an average increase of up to 4 percent.
- Part D deductibles:
- Not every Part D plan has a deductible, but for those that do, the maximum for 2015 is $320.
- Part D coverage limits and out-of-pocket thresholds:
- In 2014 initial coverage limits will be $2,960. You will pay 25 percent of your drug cost until you meet this limit, at which point you’ll begin paying 45 percent (65 percent for generic drugs).
- The out-of-pocket spending threshold is $4700. Once your spending reaches that amount, your catastrophic coverage begins and you pay the greater of 5 percent of the drug’s cost or $2.65 for generic and $6.60 for name brand. If you qualify for a subsidy, you may only need to pay $2.65/$6.60.
- Medicare Advantage Plan premiums:
- The majority of recipients have zero-premium plans, but those with a premium can expect to pay an average of $41 per month.
- Plan limits will average $240 higher than in 2014.
If you have questions about whether a different plan would serve you better and how the changes in 2015 will affect your budget, contact a Medicare supplement insurance agent today.