Medicare Premium Increase: A new woe for retiree’s

According to the recently released 2015 Social Security and Medicare Trustees’ Report, we can expect Medicare Part B premiums to increase by up to 52% in 2016. The actual increase will be announced sometime this fall by DHS. These increases will only effect people who are new Medicare enrollees and Medicare beneficiaries not yet collecting Social Security. People who are currently enrolled in Medicare or collecting SS benefits are not affected due to the “hold harmless” provision stated in Social Security laws. There is an exception of the hold-harmless provision for individuals earning over $85k or couples earning over $170k.
There is not expected to be a cost-of-living adjustment for Social Security in 2016. This is the reason the “hold harmless” provision is taking affect.There are 5 Medicare premium brackets and their surcharges range from $42 — $230. These are individual rates. Below is a chart showing the rates per bracket.

These rate hikes are just another cost that people nearing retirement are going to have to contend with when planning for retirement. It is more important now than ever to talk with a financial professional.