Medicare Part B Premiums Will Continue To Rise: Be Sure To Evaluate
By Julie Smith on December 15, 2010, 8:13 am
Medicare Part B covers many services, tests, preventive treatments, etc. that are common among health care patients, but are not covered in the Part A plan. Though many services and products are covered, keep in mind that Part B is still not a 100% insurance coverage plan. So, as with any other insurance policy, you should understand the plan and coverage completely upon enrolling.
Health Reform Law
The health reform law modifies a requirement implemented in 2007 that upper-income Part B enrollees pay higher monthly Part B premiums. The change freezes the income thresholds that determine which Medicare Part B enrollees are required to pay the income-related Part B premium, at 2010 levels ($85,000 for individuals and $170,000 for couples). Until now, the income thresholds increased annually so that the higher premiums were paid by about 5 percent of the Medicare population.
Part B Premium
Between 2011 and 2019, the share of Part B enrollees subject to the income-related Part B premium will rise from 5 percent to 14 percent (from 2.4 million enrollees in 2011 to 7.8 million enrollees in 2019), according to this analysis. Monthly Part B premiums will range from $161.50 to $369.10 per month in 2011 for those with incomes above the threshold, depending on income, while the standard Part B premium will be $115.40 per month in 2011.
Prediction
It’s almost impossible to predict how the future will go on costs for Medicare and the FEHPB or on required future services. But based on my analyses, it appears that it would be easier to select an FEHPB plan that has a low annual out-of-pocket expense, some of which are not significantly different than the cost of carrying GEHA. So, I am not seeing a lot of benefit for federal employees to sign up for Part B. Are there any statistics regarding how many otherwise-Medicare-eligible federal employees decide against signing up for Part B?
Related posts:
- With New Changes In Medicare: Medicare Part B Might Not Be For You
- Medicare Part B Premiums Vary Based On Original Or Supplemental Coverage
- Medicare Part B: New Premiums Based On Income
- Medicare Open Enrollment Becoming A Thing Of The Past
- With Medicare Advantage Plans In The Hot Seat: Should They Stay Or Go