Changes in Medicare for 2011

by Irene Card, NorthJersey.com -- Our first concern is always the premium. We do not pay a premium for Part A but we do pay for Part B. Part B covers our medical expenses, laboratory, durable medical equipment, etc. If you sign up for Part B in 2011, your premium will be $ 115.40 monthly and it will be deducted from your Social Security check.

The premium is based on income and this premium is for people whose income is equal to or less than $85,000 if single and $170,000 if married.

If you are single and your modified adjusted gross income is greater than $85,000 and less than or equal to $107,000, your premium will be $161.50 and if married, it will be $161.50 per month, per person, if your income is greater than $170,000 and less than or equal to $214,000.

The premiums continue to increase based on your income and if your income is higher than what I quoted, you are welcome to call me for the exact number. Remember, this only applies to people signing up for Part B in 2011.

The "hold harmless" provision of federal law does not allow our Part B premium to increase more than that year's cost of living increase to your social security benefit. Inasmuch as there has been no increase in Social Security retirement income checks and there will be no increase in 2011, our premium remains the same as what you are paying in 2010.

For folks who were new to Medicare Part B in 2010, their premium will remain at $110.50 per month. The 2011 increase amounts to $4.90 per month.

Part A Medicare pays the hospital bill – all but the $1,100 deductible in 2010. In 2011, the in-hospital deductible will be $1,132. If you are out of the hospital for two months or more, you have to meet the deductible again, the next time you are admitted.

The deductible for Part B (medical expenses) is going up from $155 to $162 per calendar year. Depending on which Medicare supplement policy you have chosen, these deductibles will be covered in full. Some of you still have a group insurance policy from your former employer as secondary to Medicare and, depending on the coverage, they may pay a percentage of the $162 or all of it.

Part D (Medicare Prescription Drug Plan) premiums vary widely with so many companies selling Part D in New Jersey. You will find a list of the companies in the back of Medicare and You, 2011.

If you are on Medicare, you automatically receive a copy of this booklet every year from the Center for Medicare and Medicaid Services.

You can also go online to Medicare.gov for help with determining which Part D plan will be best for you. You can only change your plan once a year, during open enrollment, which is right now.

Open enrollment goes from Nov. 15 to Dec. 31 and the change becomes effective the first of January. Then you are locked in to whichever plan you chose for the entire year.

Irene Card and Betsy Chandler are both licensed insurance professionals working at MIC Insurance Services, a health insurance services company. If you have questions relative to this column or other related topics, we invite you to call 973-492-2828.