Unless you’re a Rhodes Scholar, it becomes confusing when trying to figure the cost of Medicare insurance.
According to the 2011 Medicare Trustees’ report, COLA also known as the cost-of-living index, will end up being the “bad guy” for the official and adjusted Part B and Part D premium projections for the coming years of 2013, 2014, and 2015.
You are correct. Medicare Part B and Part D premiums will increase for most annuitants, plus consuming much of the cost-of-living increase in their Social Security benefits, as well. On the other hand, Part B premiums won’t vary with affordability except for the few annuitants with high annual incomes that exceed $85,000, and married couples with annual incomes that exceed the $170,000 level.
Well, you can pin-the-tail on the rising health care donkey for most all of it. The ballooning cost of Medicare insurance leaves all of us with less to spend on nonhealth services and products we need. The sad part of all this is that the older folks are the ones who are affected the most because a high percentage of their income is targeted toward health care.
If reimbursements were actually cut as much as the amounts required by current federal law, the number of health care providers who are actively participating in Medicare would drop like a rock, and those particular participants would find it hard to get health care.
In 2013, the adjusted Part B & Part D premiums will rise to $160.84. In 2014, $168.83, and then in 2015, $177.82