Medicare Part A deductibles rise slightly; No jump in Part B costs for most beneficiaries, CMS says

Medicare Part A deductibles will rise slightly in 2016, the Centers for Medicare and Medicaid Services announced Tuesday.

The Medicare Part A annual deductible that beneficiaries pay when admitted to the hospital will be $1,288.00 in 2016, a small increase from $1,260.00 in 2015. This covers the first 60 days of Medicare-covered inpatient hospital care.

The daily coinsurance amounts will be $322 for days 61 through 90  and $644 for lifetime reserve days, according to CMS.

For beneficiaries in skilled nursing facilities, the daily coinsurance for days 21 through 100 will be $161 in 2016, up slightly from the $157.50 in 2015. 

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About 99 percent of beneficiaries do not pay a premium for Medicare Part A.

Premiums and deductibles for Medicare Part B won't rise in 2016 for most beneficiaries due to Social Security having no cost-of-living increases next year, CMS said.

Part B covers physician and outpatient hospital services. An estimated 52 million Americans are expected to be enrolled in Medicare Part B in 2016.

Because the Social Security Administration announced there will no Social Security cost of living increase for 2016, by law, CMS said, most people with Medicare Part B will be "held harmless" from any increase in premiums in 2016 and will pay the same monthly premium as last year, which is $104.90.

CMS also announced that the annual deductible for all Part B beneficiaries will be $166.00 in 2016.

"Thanks to the leadership of Congress and President Obama, the premiums for 52 million Americans enrolled in Medicare Part B will be either flat or substantially less than they otherwise would have been," said CMS Acting Administrator Andy Slavitt.

Premiums for Medicare Advantage and Medicare Prescription Drug plans already finalized are unaffected by this announcement.

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Beneficiaries not subject to the "hold harmless" provision will pay $121.80, a calculation reflecting the provisions of the Bipartisan Budget Act signed into law by President Obama last week, according to CMS.

These beneficiaries account for about 30 percent of the total and include: those not collecting Social Security benefits; those who will enroll in Part B for the first time in 2016; dual eligible beneficiaries who have their premiums paid by Medicaid; and beneficiaries who pay an additional income-related premium.

Without the Bipartisan Budget Act, beneficiaries not subject to the "hold harmless" provision would be paying $159.30 as their monthly Medicare Part B premium, according to CMS.

States saved money as well from the Bipartisan Budget Act of 2015, as it mitigated the Part B premium increase for states which have programs that pay some or all of the premiums. The CMS Office of the Actuary estimates that states will save $1.8 billion.

Map: State Part B savings (story continues below)

Because of slow growth in medical costs and inflation, Medicare Part B premiums were unchanged for the 2013, 2014, and 2015 calendar years.

Since 2007, beneficiaries with higher incomes have paid higher Part B monthly premiums.  These income-related monthly adjustment amount affect fewer than 5 percent of people with Medicare. 

Twitter: @SusanJMorse