Medicare Part B premium costs for 2016

Published: December 2, 2015

Palmetto_rgb_webThe Centers for Medicare & Medicaid Services (CMS) has released the 2016 Part B premium and deductible costs for 2016. Railroad Medicare processes claims for Part B services. 

The 2016 monthly premiums will remain unchanged for approximately 70 percent of Medicare beneficiaries. However, the remaining 30 percent will pay a different amount based on the following criteria:

  • those enrolling for the first time in 2016
  • individuals not receiving Railroad Retirement/Social Security benefits
  • those who are directly billed for their Part B premiums
  • those who have Medicare and Medicaid and Medicaid pays the premiums, or
  • individuals whose modified gross incomes from two years ago is above a certain threshold

For beneficiaries who meet one of those criteria, Part B premiums for 2016 will be based on their annual income in 2014.

Those filing individual tax returns with annual incomes (in 2014) noted here will pay the following in 2016:

  • less than or equal to $85,000 will pay $121.80 in 2016
  • greater than $85,000 and less than or equal to $107,000 will pay $170.50
  • greater than $107,000 and less than or equal to $160,000 will pay $243.60
  • greater than $160,000 and less than or equal to $214,000 will pay $316.70
  • greater than $214,000 will pay $389.80

Those filing joint tax returns with annual incomes (in 2014) noted here will pay the following in 2016:

  • less than or equal to $170,000 will pay $121.80  
  • greater $170,000 and less than or equal to $214,000 will pay $170.50
  • greater than $214,000 and less than or equal to $320,000 will pay $243.60
  • greater than $320,000 and less than or equal to $428,000 will pay $316.70
  • greater than $428,000 will pay $389.80

The rates are slightly different for married beneficiaries who lived with their spouse (at any time during the year) and file separate tax returns. Those filing separate tax returns with annual incomes (in 2014) noted here will pay the following in 2016:

  • Less than or equal to $85,000 will pay $121.80
  • Greater than $85,000 and less than or equal to $129,000 will pay $316.70
  • Greater than $129,000 will pay $389.80.

The Medicare Part B deductible will be increasing from $147 per year in 2015 to $166 per year in 2016. 

If you have questions about your Part B Premium, you can call the Railroad Retirement Board toll free at 877-772-5772 or for the hearing impaired (TTY) call 312-751-4701. General information can also be found at the RRB’s website at www.rrb.gov.

If you have questions about your Railroad Medicare coverage, you can call the Beneficiary Contact Center at 800-833-4455, or for the hearing impaired, call TTY/TDD at 877-566-3572. Customer Service Representatives are available Monday through Friday, from 8:30 a.m. until 7 p.m. ET.