2011 Medicare Increase for Some
The Centers for Medicare & Medicaid Services (CMS) has set the Medicare premiums, deductibles, and coinsurance amounts to be paid by Medicare beneficiaries in 2011. For the most part, rates will stay the same for Part B services; whereas, beneficiaries requiring Part A services will see slight increases in both premiums and deductibles in the coming year.
Standard Medicare Part B monthly premiums will increase $4.90 in 2010 to $115.40 in 2011. With no cost-of-living increase projected for Social Security again this year, however, the “hold-harmless” provision of the Act will prevent most Part B beneficiaries from paying the increase.
The 2011 Part B deductible, which is indexed by the annual percentage increase in the Part B actuarial rate, is $162.
The deductible paid by the Medicare beneficiary when admitted as a hospital inpatient will be $1,132 in 2011, an increase of $32 from this year’s $1,100 deductible, for the first 60 days. Beneficiaries must pay an additional $283 per day for days 61 through 90 in 2011, and $566 per day for hospital stays beyond the 90th day in a benefit period (compared to $275 and $550).
For beneficiaries in skilled nursing facilities (SNFs), the daily co-insurance for days 21 through 100 in a benefit period will be $141.50 in 2011, compared to $137.50 in 2010. Those who enroll in Medicare Advantage plans may have different cost-sharing arrangements.
About 99 percent of Medicare beneficiaries do not pay a premium for Medicare Part A services since they have at least 40 quarters of Medicare-covered employment. Some enrollees age 65 and over and certain persons with disabilities who have fewer than 30 quarters of coverage, however, obtain Part A coverage by paying a monthly premium established according to a statutory formula. This premium will be $450 for 2011, a decrease of $11 from 2010. Individuals who have between 30 and 39 quarters of coverage may buy into Part A at a reduced monthly premium rate of $248 in 2011.
See the Nov. 4 CMS Fact Sheet for complete details.