Many plans have large premium increases for 2016 and a few as much as 8%!
Advertisement
Say a hypothetical Jane Hill collects Social Security.
The Center for Medicare and Medicaid Services (CMS) is the federal agency that oversees Medicare.
When you file your application for Extra Help, you also can start your application process for the Medicare Savings Programs.
You do not need to be a member of NARFE to access the web page and documents.
Medicare Part B, which helps pay for the majority of outpatient services, is in the midst of heated Congressional conversation. Medicare beneficiaries should take time to do a thorough review of all plans available in 2016. “They are experts at gaining trust and stealing money and benefits from unsuspecting victims”. Medicare has lagged behind, but is under renewed pressure now to get the job done.
Instead, use the plan finder at Medicare.gov to look over your options. Should you enroll in “traditional” Medicare or a managed-care option?
“As a outcome”, she said in an opening statement, “the 55 million Medicare cards in use today still clearly display an individual’s Social Security number”.
Barry has a simple piece of advice when it comes to all those brochures youve received: Ignore that avalanche of mailings from Medicare plans that are coming through the door. Your state will contact you to help you apply for a Medicare Savings Program.
However, if your Medicare premiums are withheld from your Social Security benefits and Social Security does not have a cost-of-living adjustment (COLA) for 2016 because of low inflation, you will continue to pay $104.90 per month for Part B. That’s because the “hold harmless” provision prohibits Social Security benefits from being reduced because of an increase in Medicare premiums. You can ask your pharmacist or physician for this information.
The letter will also explain that the monthly Part B premium automatically will be deducted from your Social Security check or railroad retirement check beginning the month your coverage begins.
Funding for Part “B” premiums is different.
Do not turn down Medicare Part B unless you have employer insurance from either your or your spouse’s current employment. Their Part “B” premium is based on a multiple of the base premium.
Joining Medicare is your responsibility!
When Social Security calculates the annual cost-of-living increase retirees receive, it looks at how much the CPI-W has increased from October 1st of the previous year through the end of the following September.
In addition to out-of-pocket drug costs, beneficiaries need to be aware that premiums, deductibles and pharmacies used by plans can change from year to year.
In theory, the Federal government picks up 75% of the cost, with seniors paying the remaining 25% in the form of a monthly insurance premium. “They should also carefully check the coverage for their prescriptions and make sure they understand all the costs and risks under their plans before enrolling”.
Doctor and hospital choice: Do your doctors accept the coverage? They are managed health care products like an HMO or PPO. At this point, beneficiaries are responsible for minimal prescription drug costs.
Advertisement
Medicare makes it relatively easy to compare drug plans with its Medicare Plan Finder tool (nwsdy.li/planfinder). Do you already have creditable prescription drug coverage? But regardless of whether you want anything to change, open enrollment provides a great opportunity to learn about potentially beneficial program changes. Are your drugs covered under the plan’s formulary (drug list)? See Medicare Premiums: Rules for Higher-Income Beneficiaries for more information about contesting the high-income surcharge.
