After holding steady at $104.90 a month for four years, the standard Medicare Part B premium that most recipients pay will ri...Read more
Medicare's Basic Part B Premium to Stay at $104.90 for 2015
- January 27th, 2015
The Centers for Medicare and Medicaid has announced the Medicare premiums, deductibles, and coinsurances for 2015. For the second year in a row, both the standard Medicare Part B premium of $104.90 a month and the Part B deductible of $147 will remain the same. Meanwhile, cost-sharing for hospital and skilled nursing stays will rise slightly. In a statement, Secretary of the Department of Health & Human Services Sylvia Burwell attributed the stabilization of Part B premiums to cost savings from the Affordable Care Act, aka "Obamacare."
Here are all the new Medicare figures:
- Part B premium: $104.90/month (unchanged)
- Part B deductible: $147 (unchanged)
- Part A deductible: $1,260 (was $1,216)
- Co-payment for hospital stay days 61-90: $315/day (was $304)
- Co-payment for hospital stay days 91 and beyond: $630/day (was $608)
- Skilled nursing facility co-payment, days 21-100: $157.50/day (was $152)
Higher-income beneficiaries will pay higher Part B premiums. The amounts for 2015 will remain unchanged from 2014 as well:
- Individuals with annual incomes between $85,000 and $107,000 and married couples with annual incomes between $170,000 and $214,000 will pay a monthly premium of $146.90 (unchanged).
- Individuals with annual incomes between $107,000 and $160,000 and married couples with annual incomes between $214,000 and $320,000 will pay a monthly premium of $209.80 (unchanged).
- Individuals with annual incomes between $160,000 and $214,000 and married couples with annual incomes between $320,000 and $428,000 will pay a monthly premium of $272.70 (unchanged).
- Individuals with annual incomes of $214,000 or more and married couples with annual incomes of $428,000 or more will pay a monthly premium of $335.70 (unchanged).
Rates differ for beneficiaries who are married but file a separate tax return from their spouse:
- Those with incomes between $85,000 and $129,000 will pay a monthly premium of $272.70 (unchanged).
- Those with incomes greater than $129,000 will pay a monthly premium of $335.70 (unchanged).
The Social Security Administration uses the income reported two years ago to determine a Part B beneficiary's premiums. So the income reported on a beneficiary's 2013 tax return is used to determine whether the beneficiary must pay a higher monthly Part B premium in 2015. Income is calculated by taking a beneficiary's adjusted gross income and adding back in some normally excluded income, such as tax-exempt interest, U.S. savings bond interest used to pay tuition, and certain income from foreign sources. This is called modified adjusted gross income (MAGI). If a beneficiary's MAGI decreased significantly in the past two years, she may request that information from more recent years be used to calculate the premium.
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Those who enroll in Medicare Advantage plans may have different cost-sharing arrangements. On average Medicare Advantage premiums are expected to rise $2.94 a month to $33.90 in 2015.
For more information on the Medicare figures, click here.
For Medicare's "Medicare costs at a glance," click here.
For more about Medicare, click here.
Last Modified: 01/27/2015