“Health care inflation has been running about double the rate of general inflation.”
“The standard monthly premium for Part B (outpatient services) this year is $135.50; Medicare’s trustees forecast annual increases averaging 5.9 percent through 2028. Enrollees in traditional Medicare can expect inflation of 6 percent if inflation for Medigap premiums is included.”
“According to HealthView, a 65-year-old couple using original Medicare this year will spend around $10,300 on premiums for prescription drugs and Medigap, and various out-of-pocket costs. In 20 years, their costs are projected to be around $33,000 annually (future dollars).”
“High-income Medicare enrollees have been paying surcharges on Part B and Part D premiums since 2007. These so-called Income-Related Monthly Adjustment Amounts (IRMAA) affect a relatively small share of the Medicare population — about 7 percent this year, according to federal data — but they are steep.”
Source: “Medicare Can Be Confusing: 6 of Your Top Questions,” Answered by Mark Miller for The New York Times, 11/1/19.
Note: My husband and I pay $4,020/year this year in Medicare and Advantage premiums for both of us. Eye and dental exams are free in our Medicare Advantage plan. We pay $50 to visit specialists ($30 in 2020) and a few dollars for prescriptions so I estimate about $4,200/year.
The US Centers for Medicare & Medicaid Services says premiums will rise about 6.7% next year (2020) for most people who participate in Medicare Part B. The increase “is largely due to rising spending on physician-administered drugs,” the agency says.
This increase is way above the CPI rate of inflation!
Source: Financial Planning for Women