The Effect of No Cost-of-Living Increase in Social Security Benefits AARP Public Policy Institute

Medicare Part B Premiums and Deductible in 2016 The Effect of No Cost-of-Living Increase in Social Security Benefits

This and Related Reports

Summary of Publication

This fact sheet describes what will happen to next year’s Medicare Part B premiums—and how that will affect Medicare enrollees and states—as a result of no Social Security cost-of-living adjustment for 2016. Unless federal policy makers enact changes, Medicare premiums for doctor and outpatient services (Part B services) will increase by 52 percent for about 30 percent of people with Part B coverage—approximately 16.5 million people. State governments will pay that increase for about 9 million of them. Premiums for the other 70 percent of Medicare enrollees will remain at the 2015 level because a hold-harmless provision freezes their premiums when the Social Security cost-of-living adjustment is zero. However, the hold-harmless provision protects only against changes to premiums. The estimated annual deductible for Part B coverage in 2016 will increase by 52 percent for everyone, going from $147 to $223. Policy makers should consider options to prevent the steep increase in premiums that many enrollees (and states) face.

Search PPI

Find the public policy institute content you are looking for by entering in search terms below. News Alerts Sign up for alerts on the latest research, events and videos on policy issues. Subscribe

A State Scorecard on Long-Term Services and Supports for Older Adults, People with Physical Disabilities, and Family Caregivers Aging Demographics

One in Three Americans is Now 50 or Older

By 2030, one out of every five people in the United State will be 65-plus. Will your community be ready? Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures

Close In the next 24 hours, you will receive an email to confirm your subscription to receive emails related to AARP volunteering. Once you confirm that subscription, you will regularly receive communications related to AARP volunteering. In the meantime, please feel free to search for ways to make a difference in your community at Javascript must be enabled to use this site. Please enable Javascript in your browser and try again.