Underwriting is the process assessing risk of issuing insurance. Undewriters evaluate applications,
The Centers for Medicare and Medicaid Service (CMS) have announced updates for 2019. There will be an increase in the 2019 deductible for Medicare Part A, and an increase in the Medicare Part B premium.
Changes to Medicare Part A
The annual deductible for Medicare Part A is increasing a minor $24 in 2019, from $1,340 to $1,364.
Changes to Medicare Part B
Medicare Part B Deductible
There is a slight change to the Medicare Part B deductible in 2019. It will rise from $183 per year to $185 per year.
The standard monthly premium for Medicare Part B enrollees will be $135.50 for 2019, $1.50 more than the cost in 2018.
Historically, about 70 percent of Medicare enrollees fall into the “held harmless” category. Under this provision, individuals already on Medicare were only subject to a percentage increase on their Medicare Part B payments that was in line with the percentage increase in their cost-of-living adjustment on their Social Security income. In 2019, Medicare predicts that about 2 million Medicare beneficiaries will pay less than the full $135.50 Part B premium in 2019 because of this provision.
The individuals in the “non-held harmless” population are:
- Not currently receiving Social Security benefits
- Enrolling in Medicare for the first time in 2019
- Directly receiving their Part B premium bill
- Dual eligible for Medicare and Medicaid
- Higher-income, thus paying higher premiums
For higher-income beneficiaries, the Part B premium will look a bit different.
What This Means For Current Policy Holders
- The Part A Medicare deductible in 2019 will increase from $1,340 to $1,364.
- Your Social Security benefits and costs will increase by approximately 2 percent for 2018.
- For 30 percent of Medicare beneficiaries who are not in the “held harmless” population, Medicare Part B premiums will increase to $135.50.
- The Part B annual deductible for all Medicare beneficiaries will increase to $185.
- Higher earners may have to pay more for their Medicare Part B.
If you’re concerned about your coverage for the upcoming year and would like to review your Medicare coverage options, please call one of our Medicare supplement specialists directly at (800) 310-2550.