Medicare Changes Part A Deductible

Medicare Changes Part A Deductible

Medicare changes for 2017 came out in December.  One of the changes was for Medicare Part A.  Part A is the hospital side of Medicare.  It does not cost anything because you paid the Medicare Part A premium during your working years.  It was part of your payroll taxes.  The premium is zero if you have enough quarters of work and paid in to Medicare; however, Medicare Part A has a deductible.  The deductible was $1,288 for 2016.  The Part A deductible for 2017   is $1,316.

Remember the Medicare Part A deductible is for each event within a 60 day period.  If you revisit the hospital 61 days later OR there is a different and separate event resulting in admittance to the hospital, you pay the $1,316 again.

Increases Passed On To You

The significance of the increased Part A deductible will be an increase in the cost of your Medicare Supplement.  Most Medicare supplements cover the Part A deductible as many times as it may occur in a given year.  Because the insurance company will now be on for more deductible, it will have to offset that expense and risk with higher premiums.  Your premium may not increase significantly, but it does cost the insurance company more.  Consequently it will ultimately cost you more.

Medicare Advantage Is Different

For those on Medicare Advantage plans, you are not directly effected.  Your hospital co-pays, as well as the other co-pays, are determined by your individual plan.  They are already set for 2017.  Any increases may result in increases in hospital co-pays down the line because, like supplements, someone needs to pay for the additional expense.  The actual co-pay is determined  by your Medicare Advantage plan, and they are now set for 2017.  Check the changes to your Medicare Advantage plan for 2017.  You received your notification of changes in October.  If you cannot find it, call the customer service phone number on the back of your card.  They will send you a new statement of understanding with all the 2017 co-pays, deductibles, and co-insurance.

Consult with your agent or give us a call to see how any changes to Medicare may affect your situation.