Medicare Trustees Warning

By: Mark J. Mabaquiao

 

According to the recently released 2016 Social Security & Medicare Board of Trustees’ annual report, the Hospital Insurance Trust (Part A) is expected to exhaust its excess cash reserves by 2028. The trustees warn that politically gridlocked Washington needs to act sooner, rather than later, to shore up finances. If Congress allows the fund to run dry, millions of seniors and disabled people living on fixed incomes would face steep cuts in benefits, because Medicare would only be able to pay 87% of projected costs.

Furthermore, the trustees said that some Medicare beneficiaries may face sharply higher Part B premiums which covers doctor visits and other types of outpatient care. Those who would feel the impact include new beneficiaries and people with higher incomes. The trustees project that the base monthly premium for this group will increase by about 22%, to $149.00 per month. Upper-income beneficiaries would pay considerably more. Officials did caution that projections for next year’s premiums are still uncertain. The final numbers will be released this fall.

In short, what does this all mean for you? It means get ready for higher taxes, lower benefits, higher out of pocket medical expenses, less provider options, and a potentially huge hit to your retirement savings.

You have twelve years to prepare. Whether or not Congress does anything, I recommend doing two things – commit to being healthy and get the right health coverage. Being healthy can keep your medical costs down today and in the future. This means eating right and staying active, but also includes things like getting annual check-ups from your doctor and dentist. Getting the right health coverage means enrolling in a plan that meets your medical needs and at the same time, is cost-effective. Get informed. This one decision can save you thousands and in some cases hundreds of thousands of dollars. MEDICARE EDUCATION SCHEDULE (Call for more details)

– Tuesday, August 9, 2016, 3:30PM – 5:30PM, Advocate Lutheran General Hospital, Center for Advanced Care.

– Tuesday, September 13, 2016, 9:00AM – 11:00AM, Advocate Illinois Masonic Medical Center, Center for Advanced Care