Anyone who has been enrolled in Medicare for a while knows that this is the time of year when CMS announces any changes in Medicare Premiums and deductibles.
Given the recently announced dismal increase in Social Security payouts for 2014, the fact that 2014 Medicare premiums and deductibles will remain mostly steady, is good news.
That said, any increase will be felt, especially given the fact that the formula to measure inflation and hence calculate changes in Social Security income is pure fantasy. The Social Security administration recently announced a 1.5% increase in payouts for 2014.
Two things related to that before I move on to Medicare premiums and deductibles for 2014: First, are you only paying 1.5% more for living expenses than you did last year? And, if you weren’t required to pay into Social Security, but rather could invest that money on your own, would you be earning more than 1.5%? (Leave a comment below)
2014 Medicare premiums
The following table shows Part B premiums based on income. The vast majority of people pay $104.90 per month. The 2014 Part B premiums are remaining at the same level as 2013 premiums.
|Individual tax return income:||Joint tax return income:||Part B premium income related monthly adjusted amount||Total monthly Part B premium|
|Less than or equal to $85,000||Less than or equal to $170,000||$0.00||$104.90|
|$85,000 to $107,000||$170,000 to $214,000||$42.00||$146.90|
|$107,000 to $160,000||$214,000 to $320,000||$62.90||$209.80|
|$160,000 – $214,000||$320,000 to $428,000||$62.90||$272.70|
|Greater than $214,000||Greater than $428,000||$63.00||$335.70|
The Part A premium is $426 per month, a decrease of $15 from 2013. Approximately 99% of people receiving Medicare benefits are not required to pay a Part A premium because they worked at least 40 quarters.
2014 Medicare deductibles
2013 data is added for comparison.
|Part A Hospital Deductible||$1,184||$1,216|
|In-patient days 61 – 90||$296 per day||$304 per day|
|In-patient days 90+||$592per day||$608 per day|
|Part B Deductible||$147||$147|
The two amounts that most every one will more than likely be required to pay, The Part B premium and Part B deductible are remaining the same. There will be a small impact in fees if you are hospitalized. Additionally, if you require a skilled nursing facility, you will see an increase of $4 per day (days 21-100) to $152.