Potential Changes to Part B

The recent report by the Medicare trustees is currently being evaluated by HHS Secretary Sylvia Burwell, who is expected to make a final decision October 2015 to impact Medicare beneficiaries in 2016.

The trustees recommend increasing Part B premiums charged to seniors monthly some 52% starting in January 2016. This would mean going from $104.90 to $159.30.
The report states that this would impact 30% of all Medicare beneficiaries and would be again tied to their income, targeting those with incomes over $85,000.

The other, more impactful recommendation is a change to the Part B deductible to $223 instead of the current $147. This would impact ALL Medicare beneficiaries and is sure to cause outrage by the senior lobbyists on K street. There will be much pushback to such an increase.

CSG Actuarial is analyzing the impact on carriers and on seniors with Plan F and Plan G. The initial analysis is that the Plan F rates will, after accommodating for the higher built-in cost in the premiums of Plan F which will absorb the new Part B deductible, need to increase 4% due to more claims. Plan G, however, would see less claims and actually justify a rate reduction. How carriers would choose to implement the change is still up in the air.

 

Part B Deductible History

We will continue to monitor this recommendation’s impact on seniors and whether or not it will be adopted.

Stay tuned!

-Chris Westfall

Medicare Supplement Training