To Get Information on 2012 Medicare Deductibles click here.
Medicare premiums 2011 vs Medicare premiums 2010
The Medicare premiums and deductibles that become effective in 2011 have been announced by CMS. Make note of these amounts because this information was not available when the official government handbook, “Medicare & You” was printed. For some people there will be little change, others will see an increase of 4.4% over 2010 Medicare premiums.
Medicare Premiums 2011 vs Medicare Premiums 2010
The good news is that Medicare beneficiaries who currently have Part B premiums withheld from Social Security benefits and have incomes of $85,000 or less ($170,000 or less for joint filers) will not have an increase in their Part B premiums. They will continue to pay the same $96.40 or $110.50 premium amount for 2011.
Those beneficiaries with higher incomes will see Medicare Part B premiums increase 4.4% to $115.40 in 2011.
The majority of people on Medicare do not pay a Medicare Part A premium because they or their spouse have 40 quarters of employment where Medicare payroll taxes where withheld.
If Medicare beneficiaries have 30-39 quarters of Medicare-covered employment, they will pay $248 per month as a Part A premium. And if less than 30 quarters of employment qualifies they will have a Part A premium of $450 per month.
Medicare Deductibles for 2011
The Part A deductible is required for inpatient hospital stays for days 1-60 each benefit period. The 2010 Part A deductible was $1100 and will be increased to $1132 for 2011.In addition the deductible for days 61-90 increased to $283 from $275 and days 91-150 increased to $566 from $550 in 2010.
The Medicare Part B deductible for 2011 is $162, an increase of $7.
Medicare premiums 2011 – who is affected?
Unless you have less than 40 Medicare-covered quarters of employment there is not a significant change in Medicare premiums for 2011. The Medicare deductibles, on the other hand, will have more of an impact on a larger number of people.
Here’s a look at the three groups of people and how they will be affected.
Those beneficiaries with original Medicare will feel the largest effect of increased Medicare deductibles for 2011. Without supplemental coverage people with original Medicare will be more exposed to having higher out-of-pocket costs.
Medicare Supplement Insurance
People who purchase a Medigap policy will have less impact than those with original Medicare only. Although expect premium adjustments by policy providers in the future.
Medicare supplement Plans B, C, D, F, and N cover the part A deductible at 100%. The Part B deductible is covered by Plan C and F. The most comprehensive coverage is afforded to those who purchase Medicare Supplement Plan F.
Medicare Advantage Plans
People enrolled in a 2011 Medicare Advantage plan will feel less of an impact by increased Medicare Deductibles than the other two options. At least for 2011. These additional costs will certainly be factored into 2012 Medicare Advantage plans with either higher premiums or reduced benefits by way of greater cost sharing.
All-in-all the increase in Medicare premiums for 2011 will not have a a major impact. Deductibles will cut into the finances for some Medicare beneficiaries. If you are not enrolled in a Medicare Advantage plan or purchased a Medicare supplement this may be a good time to compare your options.
I truly appreciate all the good you do for us. Your information is timely, accurate, and enlightening.
I did find a grammatical error in your article. You may want to correct it.
Currently it reads:
Medicare premiums 2011 – who is effected?
Medicare premiums 2011 – who is affected?
Thank you Saundra. I appreciate the positive reinforcement. I should pay more attention… next I’ll just be making up words!
Thank you so much for your reports. They have been instrumental in unraveling the changes this year. Keep up the good work
Thank you for the feedback Mark. I’m glad I helped. We’ve seen a lot of changes Medicare Advantage plans for 2011.
WHY IS THE DEDUCTIBLES SO HIGH ON ADVANTAGE PLANS COMPARED TO REGULAR MEDICARE?
Hazel, I’m not sure which plan you are referring to. Most 2011 Medicare Advantage plans do not require a deductible for medical services. Plans typically require a copay or coinsurance. As an example the AARP Medicare Complete plan where I live requires a $290 per day copay for hospital stays in network, days 1-5, after that $0 copay. Original Medicare requires a $1132 deductible for a covered hospital stay and is triggered on the first day. There are some areas where Medicare Advantage plans are lacking but having deductibles higher than original Medicare is not one.
David — Thanks for all your insight. Can you mention what the areas are where Medicare Advantage plans are lacking?
Also, will another plan turn you down if you’ve had a serious health problem in 2010 and you want to switch?
Thanks — Maureen
Maureen, Many rural areas have fewer plans available. Visit http://www.medicare.gov to find plan options in areas you may be interested in. The only medical condition that will generally not allow you to enroll in an Advantage Plan is end stage renal failure. So unless that is the case you are free to switch to another Medicare Advantage plan in 2011.
David, I didn’t mean a geographical area. I meant what you referred to above in your reply to Hazel, when you said, “There are some areas where Medicare Advantage plans are lacking, but having deductibles higher than original Medicare is not one.”
Can you elaborate on those areas?
Sorry I wasn’t clearer.
Maureen, I’m sorry I should have my own reply! When I wrote that I was thinking of Medicare Advantage Plans that are requiring 20% coinsurance for some procedures performed in network and higher amounts (often 30%) out-of-network. Original Medicare requires 20% coinsurance for covered outpatient procedures and network restrictions are not an issue.
I really think that the charge of 10% per year tacked onto the monthly premium is rediculious and not fair!!!
Just because there are those of us that don’t take Medicare Part B at 65 years of age because we have a far beetter paying insurance, and therefore, we leave the Medicare Part B for those who really do need it at that time! Whe we do sign up for Medicare Part B, we are told there is a 10% per year charge—————how rude!!
Then there are those who are getting Medicare Part B and don’t pay a penny??? Where is the equality of this??? There needs to be some major changes in the people who decide these rules, because they are not one bit fair—but then, whoever said that the U S Government was fair???
Marva, If I’m understanding your situation correctly and you have insurance through an employer, you may be misinformed. When you do decide to leave the employer group policy, you will then be entitled to a Special Enrollment Period. A penalty is not charged if you have a Special Enrollment Period. You can enroll in Part B during the 8 month period that begins the month after the employment ends or the group health plan coverage ends, whichever happens first. As far as equality goes… expect equality only in mathematics!