Medicare costs 2016
Thousands of Americans may be preparing to tighten their belts in 2016.
Social Security benefits for seniors will stay flat as the cost of Medicare goes up.
Most receive about$1,200 a month. For one out of every third recipient, that’s all the money they receive.
Many seniors will face rising healthcare costs as well, some will see an increase in their monthly premium for Medicare Part B, and all will see higher deductibles for those doctor visits.
AARP South Dakota Associate State Director Cathy McLeer said “predominantly those are going to be higher income Medicare beneficiaries. Someone who may be new to Medicare, or someone who doesn’t have their premiums deducted from their Social Security paychecks every month. Some of those individuals may see as high as a 50 percent increase in their premiums and deductibles in 2016. That’s why AARP is urging congress to find a solution for that.”
While AARP leaders are asking Congress to step in, a few seniors aren’t happy with Washington for letting this happen.
David Christensen said “you get so much a month, and that’s it. Then of course, now our medical is going to go up, our deductions are going to go up, and I feel that the government’s letting us down because they give the federal government a raise.”
An increase in Medicare benefits is in the cards for many seniors like Christensen.
“When you’re on a fixed income, you’re already falling behind, we watch our dollars, but you’ve got to watch it more now,” Christensen said.
Monthly Medicare premiums will go up for those who don’t have deductions taken out of their Social Security checks. It’s why the AARP is reaching out to congress to help people like Christensen.
“That in the event of a no COLA year, like we’re having right now, where there is no increase in that monthly benefit for Social Security recipients that all Medicare beneficiaries should be held harmless,” McLeer said.
For nearly a third of South Dakotans on Social Security, it’s their only income.
“Social Security is a very important part of retirement, but it’s designed to be just part of your retirement, and the earlier you can start saving the better,” McLeer said.
Rising Medicare costs still hit seniors’ checkbooks.
“There’s certain things that i go for, we have our medications, and they have to be renewed, and they don’t get any less money either, that keeps going up,” Christensen said.
The AARP Chief Advocacy Officer sent a letter to Congress in mid-October..
The Association’s leaders hope there will be some financial relief for retirees by January.
n its annual report on Medicare, officials projected the following 2016 increases for different income groups:
• For incomes below $85,000 ($170,000 if filing jointly) — Part B premiums would rise from $104.90 to $159.30.
• For incomes between $85,000 and $107,000 ($170,000 to $214,000 if filing jointly) — from $146.90 a month this year to $223.00.
• For incomes between $107,000 and $160,000 ($214,000 to $320,000 if filing jointly)—from $209.80 a month this year to $318.60.
• For incomes between $160,000 and $214,000 ($320,000 to $428,000 if filing jointly) — from $272.20 a month this year to $414.20.
• For incomes ab