Budget agreement by Congress will prevent 50% Part B price hike
Prices will still raise slightly
Last week, we wrote about the likelihood of Medicare Part B premiums increasing because the Cost-of-Living did not increase.
Because of action by Congress, Medicare Part B premiums will not increase by 50% as expected. By slightly raising the annual deductible for all beneficiaries, and using money from the Treasury to cover Medicare Part B, the price hike will be avoided.
What will I pay?
- All Medicare beneficiaries will pay more for the annual deductible, which will increase from $147 to $167. The price originally predicted was $233.
- For most beneficiaries, their monthly Medicare Part B premium is $104.90. 30% of beneficiaries will see an increase to $120. Before the budget agreement, the premium would have been $159. Your premium will increase if:
- All beneficiaries will pay $3 more per month for their premium until 2021, to pay back the Treasury’s loan.
What else is in the agreement?
- A new felony charge: Conspiracy to commit Social Security fraud, which carries a maximum fine of $250,000 and up to 5 years in prison.
- A requirement that, if the prices of generic drugs rise faster than inflation, companies that produce them must provide Medicaid with bigger discounts.
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