The Obama administration has released a 2013 budget proposal that calls for a $268 billion cut to Medicare and a $52 billion reduction in Medicaid over a 10-year period. What will Medicare cuts mean for the cost of Medicare and Medicare Supplement insurance?
The 27-percent cut to Medicare physicians that was coming at the end of the year will not take place. In fact, most of these changes won’t be in place until 2017. At that time, Medicare Part B and D premiums will be increased by 15 percent on an income-related scale until one-quarter of beneficiaries are required to pay the increased premiums. Current beneficiaries and those approaching retirement age will be exempt.
Also beginning in 2017, new Medicare beneficiaries with Medigap plans that cover most Medicare co-pay charges will have a new surcharge. The plan calls for a surcharge on Part B premiums of around 15 percent of average Medigap plan premiums, which is about 30 percent of Part B premiums. Again, those receiving Medicare or about to will not see the surcharge. Other Medigap insurance plans will also be exempt.
If you’re nearing retirement, you can go ahead and shop for Medicare plans to help you save on health care with the information you can find on our website. We can help you with Medigap plans, Medicare Advantage plans, and Prescription Drug plans. Our website is loaded with help, and you can also get an independent professional opinion to help you compare plans at no charge. Just give us a call to arrange for a confidential consultation.
Wiley Long is founder and president of Medigap Advisors, and is passionate about helping people navigate the confusing waters of Medicare. He is the author of The Medicare Playbook: Designing Your Successful Health Coverage Strategy, a clear and simple explanation so you can make the most of your Medicare coverage. For more information visit www.MediGapAdvisors.com.