How Much is my Medicare Part B Premium Going Up in 2016?

Contributed by: Nick Defenthaler, CFP® Nick Defenthaler

Several months ago we heard the news that Medicare part B premiums were increasing by a whopping 52% for many Americans currently enrolled and those who were set to begin benefits in 2016 (Click here to read Matt Trujillo’s blog describing the proposed increase in greater detail).  Obviously this created quite an uproar, which has since caused a significant scaling back of the increase. 

On November 2nd, when President Obama signed the “Bipartisan Budget Act of 2015” into law, most of the “press” was focused on the new Social Security changes that will occur in 2016 (Click here to see how the changes could impact your filing strategy).  However, the deal also included a revision to the increase in Medicare part B premiums many would face. The change effectively trimmed the hike to approximately 14% (from 52%) and included a $3 per month surcharge to premiums.  The majority of those impacted by the increase are those who are single with income over $85,000 and those who are married with income over $170,000 (approximately 30% of part B participants). 

Although no one is happy when a monthly expense goes up by 14%, I must say that it’s extremely refreshing to see both political parties come together and compromise on an issue that was set to have a dramatic impact on millions of Americans. 

If you or anyone you know has questions or concerns on how these changes could impact your personal situation, please don’t hesitate to reach out to us for guidance. We’d be happy to help!

Nick Defenthaler, CFP® is a CERTIFIED FINANCIAL PLANNER™ at Center for Financial Planning, Inc. Nick is a member of The Center’s financial planning department and also works closely with Center clients. In addition, Nick is a frequent contributor to the firm’s blogs.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Nick Defenthaler and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete.