Medicare Costs are Increasing for Some

Retirement Planning

Medicare Costs are Increasing for Some

Posted by COTO Insurance & Financial Services
1 month ago | December 17, 2018

As you’re planning for retirement, one of the most important things you can remember is to expect budgetary and expense changes from year to year. It is unlikely that your expenses will remain static throughout retirement, so your income planning decisions will need to be adjusted as well.

One of those expenses is healthcare. We know that the cost of healthcare tends to increase each year, sometimes even outpacing inflation. So you always need to stay on top of those changes and make the necessary adjustments.

For 2019, Medicare costs are increasing just slightly, depending upon your plan. Here’s a brief overview of what you can expect.

For those on Original Medicare, your premiums have been adjusted upward as follows:

  • Part B standard premiums will increase from $134 to $135.50, for most people
  • Part B annual deductible will increase from $183 to $185
  • Part A inpatient hospital deductible will increase from $1,340 to $1,364 per benefit period

Those numbers are fairly straightforward, except for the Part B standard premiums. Remember, those premiums apply only to individuals with a taxable income up to $85,000, or married taxpayers with joint incomes of $170,000 or less.If your income is higher than those limits, you pay higher Part B premiums (from 189.60 to $450.60, also subject to occasional adjustments).

As for Medicare Advantage plans (also called Part C), those premiums are determined by the insurance provider. Since the Annual Election Period has just ended, you should already know if your costs will be changing next year. It is not unusual to see premium increases for Advantage plans, since the cost of healthcare overall continues to rise.

These premium increases often seem small at the time, but keep in mind that you’re planning for a retirement that might last 20 years or longer. Over the years, these small increases do add up. That’s why we urge you to continue planning for changes, and adjusting your retirement income and budget accordingly. Come meet with us, and we’ll discuss ways to establish a retirement income that keeps pace with inflation.

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