With the recent increase in premiums for Medicare, for most the payments have jumped up by 5.6% to $93.50 monthly or ($1,122 a year). Overall though most agree, this increase in premiums is a lot smaller than many expected. Almost all the Insurance companies were predicting that the premium increases would hit high double digits, but fortunately for our senior citizens the volume of services and tests that are normally ordered by doctors for their patients through Medicare have been slowing down.
Even though the premiums have increased at a smaller than expected rate, there is a down side for the wealthier beneficiaries. Those Medicare holders that are a little more financially stable, will end up paying more for their Medicare Part B Plan. The Medicare Part B Plan covers their doctor's visits and outpatient hospital care. For those who make $80,000 a year (or a couple that makes over $160,000 a year), the payment will change to $106 a month. That increases their yearly payment to $1272, a fairly small percentage of that level of income. As for the seniors that make more than $80,000 a year (or a couple that makes over $160,000 a year), the payments are increasing to $162 a month (or $1,944 a year). The Center of Medicare and Medicaid Services states that those who pay the most will actually get services worth much more. In addition, these higher payments will reduce the governments costs by $20 Billion dollars over the next decade. So those that are wealthier will not only be receiving a much better service but they are also helping the government by cutting the costs.
For most the increase in premiums is the lease of their worries, many are still trying to understand all the recent changes to the system. Which Plan best suites your needs is far more important, choosing the wrong Plan could land up costing you many thousands of dollars.