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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.