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Medicare 2016 Costs at a Glance

Learn your Original Medicare 2016 costs

by Katie Banks+ on Nov 19, 2015 | 3 Comments

Original Medicare 2016 costs for Medicare Part A and B have just been released. See below for what your monthly and yearly Medicare costs will be.

Medicare Part A 2016 Costs

Medicare Part A covers hospitalization. Here is what you’ll pay in 2016:

  • Premium: $0 for most people, but if you don’t qualify for a $0 premium it will cost you $437*
  • Deductible: $1,364 (for each benefit period)
  • Hospitalization Coinsurance Days 1-60: $0
  • Hospitalization Coinsurance Days 61-90: $335 per day per day
  • Hospitalization Coinsurance 60 Lifetime Reserve Days: $670 per day per day
  • Hospitalization Costs after reserve days: 100% of costs
  • Skilled Nursing Facility Coinsurance Days 1-20: $0
  • Skilled Nursing Facility Coinsurance Days 21-100: $170.50 per day
  • Hospice Care: $0*
  • Home Health Care: $0**
  • Max Out of Pocket Costs: Unlimited

*If you or you spouse has not worked for a minimum of ten years at a job that pays into Social Security you are responsible for the premium.

**There may be additional durable equipment costs and/or respite care costs.

Medicare Part B 2016 Costs

Medicare Part B covers day to day care. These are your costs for 2016:

  • Premium for Enrollees prior to 2016 who pay through Social Security: $104.90 **
  • Premium for Enrollees who do not pay through SS or are new to Part B: $135.5**
  • Deductible: $185
  • Clinical Lab Services: $0
  • Approved doctor’s services: 20%
  • Durable Medical Equipment: 20%
  • Preventive Care: $0
  • Max Out of Pocket Costs: Unlimited

**If your annual income is 85k or higher you’ll pay a higher premium.

How to Lower Your Medicare Out of Pocket Costs

There are a few options to lower the above costs. If you do not have retiree, job-based, or other creditable insurance, you will want to consider enrolling in one of the following:

  • Medicare Advantage coverage: which maxes your out of pocket costs to a max of $6700 by offering limited networks, but adding extras like drugs and dental
  • Medigap coverage: these plans can cover all of your Medicare out of pockets costs, and add an additional 365 days of hospitalization and foreign travel emergency

Learn More about Medigap Get a Medigap Quote

Learn More about Medicare AdvantageGet a MA Quote

Next Steps
For further questions about your 2016 Medicare costs call the number above or click here if you want to get a Medicare Insurance quote to learn more about plans that can limit your out of pocket costs.

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Reader Comments and Questions

Click Here if you have a question

By Louella on June 11, 2017

My spouse is turning 65 in march. I plan on enrolling him in Part A, & B along with Part D. I also am interested in the medigap coverage for him. My question is 1) Do I really need the Part D for him? 2) Is this Too much coverage? 3) What is the monthly cost of medigap coverage? How does all this coverage effect his social security benefits and his VA benefits? Also, I'm curious about "Optimum" insurance coverage do you know anything about that coverage? Thank you

Louella,
Thank you for your questions! We will answer these out of order, but hopefully it will help! If he has VA benefits he may not need to enroll in Part D -this you will need to contact the VA directly for his specific answer. With that said, enrolling in these plans should not have an effect on his SS (except for the Part B premium that will be taken from his SS, if you so choose) or VA. We are not aware of Optimum. The monthly cost of a Medigap depends on a few factors such as DOB, zip, and county. To get a Medigap quote you will want to contact one of our Senior65 licensed independent insurance agents at 800-930-7956.
-Eric from https://www.senior65.com/


By Dave on May 08, 2016

I am a veteran with 80% service connected disability. I am fast approaching 65 and need to know what additional caverage I need if any. Should I buy gap insurance

Dave,
If don't qualify for ChampVA, and can afford a Medigap policy, then yes, we suggest enrolling in a Medigap plan. To learn more about gap coverage in your area call one of our licensed independent insurance agents at 800-930-7956.
-Amy from https://www.senior65.com/


By Joey on March 25, 2016

What if I go without Part B? It doesn't seem to cover much, and I have to pay out a lot to get a little covered. So if I am hospitalized I will only pay that deductible, which isn't that much, and, since, I don't expect that I will be hospitalized I should be fine.

Joey,
We wish it were that simple. Unfortunately, if you're hospitalized your Part A deductible covers your hospital stay, nurses, surgery, but it does not cover the cost of your doctor or surgeon, nor any administered drugs in a hospital setting. Without Part B coverage, you will pay 100% of these costs, plus 100% for any diagnostic testings, screenings, doctor's office visits, and second opinions, that would determine if you need to be undergo surgery.

We cannot recommend highly enough that you enroll in Part B, and consider enrolling in a Medicare Advantage or Medigap plan, to help off-set the costs of Original Medicare. Contact one of our licensed independent insurance agents at 800-930-7956, to determine if Medigap or Medicare Advantage are right for you.
-Eric from https://www.senior65.com/



Have a question not answered above??? Click here

PLEASE NOTE: We cannot comment on specific Medicare claims. Contact Medicare directly if you are trying to see if your issue is covered.


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