Major Medicare Changes that May Affect You in 2017
Thousands of Americans use Medicare as their health insurance. This joint federal and state program helps ensure that individuals can have access to medical benefits when they need them the most. While beneficiaries of Medicare are typically individuals over the age of 65, people with disabilities and people with End-Stage Renal Disease may qualify as well. While this program is well known, there are constant fluctuations in coverage, benefits and costs that keep people guessing. It is important to understand these changes as they occur each year whether you are a current recipient or not. These changes could potentially affect future access to the program, so ignorance may not be as blissful as you had hoped.
With the shift of tides in the White House, it comes as no surprise that there would be some changes to health insurance for 2017. The Affordable Care Act (ACA) was a large target for the incoming platform, and many anticipated an even bigger overhaul than we are facing. While most of the proposed repeal for the ACA was halted, there are still undercurrents that are causing a ripple effect on this year’s Medicare plans.
Rising Costs
While many people do not pay a premium for Medicare Part A, that doesn’t mean that it is entirely free from increases. Those that qualify for free Part A coverage do still end up paying for services and benefits as they use them. Services such as inpatient hospital stays, care in a skilled nursing facility, hospice care and home health care will see higher deductibles and co-payments this year. The amount of the increase will equal the increase in premiums for those that pay for Part A. According to Medicare, the maximum premium cost has risen to $413 as opposed to the $411 that it cost in 2016.
Medicare Part B costs for services and supplies needed to diagnose and treat diseases have risen as well and are based on your taxable income from 2015. Costs range from $134-$428. These changes will affect Medicare supplements {internal link here} and Medicare Advantage plans {internal link here} as well. But if your premiums are automatically deducted from your Social Security check, your premium will only increase a small amount.
But it isn’t just costs that are rising – caps are too. The American Physical Therapy Association reports that the therapy cap for physical therapy and speech-language pathology for 2017 is up to $1,980, a $20 difference from 2016. There is a separate $1,980 cap for occupational therapy, as well.
Medicare Part D Coverage
While the cost of Part D deductibles and co-pays are also increasing, the options are continually dropping as well. There are 16% fewer plans to choose from in 2017, but you still have a healthy array of options with 746 available plans across the country. A little comparison-shopping with help from an insurance professional or your pharmacist can help to ensure you are on the best plan for your state.
But don’t worry that your current plan that you adore would ever be in jeopardy. Medicare plans are guaranteed to be renewable for your entire life. As long as you keep up with your payments, your plan will not be taken away from you. But that doesn’t mean that you need to stick with the plan that you chose 10 years ago. As changes come, more appealing options may arise as well.
There is no “one size fits all” Medicare plan. The best type of plan will vary from person to person. Depending on your income, health and coverage needs, you may have a very different plan than your neighbor. Speak with an insurance professional to learn what your options are. If the 2017 changes have negatively affected your current plan, you may be able to find a plan that better suits your needs.
Whether the 2017 Medicare changes directly affect you or not, it is important to stay up to date on all changes made to major healthcare programs. If you are a current recipient, certain shifts may have a bigger impact than others and if you are under the age of 65, changing tides could mean changes in availability when you reach an age of eligibility. As you keep up to date with Medicare changes, don’t hesitate to ask for clarification on subjects or updates you don’t fully understand. There is power in knowledge and you don’t want to be the last one to get the memo before you head to your doctor’s office and find that your coverage has changed.