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.