30% of Medicare enrollees including new enrollees may be hit with higher premiums. Laws now require Medicare to recover 25% of Part B expenses for covered medical equipment, outpatient and doctor services.
These expenses are increasing, which is causing Medicare to hike their premiums. Normally, enrollees with Part B will pay higher premiums.
However, this is not expected to be the case in 2016. This is because most Part B premiums are paid to people via monthly Social Security payments. They are called hold harmless provision.
According to this rule Medicare enrollees who pay low premiums this way about 70% of all enrollees can not be required to pay this premiums will increase next year, which are larger than the amount of the annual cost-of-living adjustments in his or her Social Security benefits
However, Medicare must still recover that 25% of Part B expenses somehow. They have no choice but to look to the other 30% of enrollees to pick up the entire tab for higher Part B premiums. This includes seniors who have high incomes, those new to Medicare, and those who are not paying for Part B through Social Security.