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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For more information about Congress’s agreement and what it means for seniors, see this article from the New York Times.

Click here to read more about the changes to Social Security in the budget agreement, from the LA Times.

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