There’s a lot of buzz about the new health reform and what will happen with Medicare. This new law is meant to lower costs not increase them, but then why are there emails spreading that Medicare Part B premiums are skyrocketing? Here are a few things we’ve found out.
Will Medicare Part B Premium be $247?
No. The truth is Medicare’s Part B premium formulas were determined by Congress way before the new health care reform. This is a baseless rumor being spread by email. The premium has stayed the same for 2014 at $104.90.
How does Medicare determine what a senior pays for Part B?
Original Medicare looks at the cost of health care from the year prior to make a prediction for the following year. The government pays 75% and Medicare Part B recipients pay 25%. This is in no way affected by the Affordable Care Act, AKA new health care reform. It is set up so that costs of healthcare for seniors with Medicare are lowered – both Parts A &B. This could mean that the Part B premium could be held at the current price, or actually be lowered.
Will anyone’s Medicare Part B premium be affected?
From the 2003 law, anyone with an income over $85,000 for individual, and $170,000 per couple pays a higher monthly premium. With the new law, these numbers are frozen until 2019 -with natural inflation a greater percentage of seniors may pay more for their premium.
Premiums for 2014
- Normal Medicare Part B premium is $104.90
- For 85k adjusted gross income, premium is$146.90
Are any Medicare changed by the ACA?
It is undetermined at the moment, but speech therapy, physical therapy, and occupational therapy may have limitations of coverage/how much Medicare will pay in. Medigap, AKA Medicare Supplemental insurance, maybe able to help cover your costs. It can cover deductibles, coinsurance, extends hospital stays, and offers many other benefits. To learn more about Medigap, go to our Medigap Overview Page.
Conclusion
It is impossible to predict costs for the coming years, but with the Affordable Care Act, seniors are supposed to see their Medicare costs go down. If you have any further questions about Medicare visit our Senior65.com Medicare Overview page.