Millions of Medicare members face 52% higher premiums in 2016

Due to a quirk in the law, one-third, or some 50 million elderly Medicare-dependent Americans could pay 52% higher monthly premium for their Medicare Part B by 2016, according to Center for Retirement Research at Boston College.

According to the researchers' report, "The anticipated lack of Social Security cost-of-living-adjustment (COLA) will cause a flap in the Medicare program because, by law, the cost of higher Medicare Part B premiums cannot be passed on to most beneficiaries when they do not get a raise in their Social Security benefits."

The Social Security Trustees Report predicts that for the third time since the automatic adjustments were done in 1975, people who got Social Security payments will not get their COLA by 2016.

The law has held harmless provisions limiting the dollar increase seen in premium to the dollar increase seen in the Social Security benefit of an individual. This provision is applicable to some 70% of Part B enrollees.

If the Congress or Health and Human Services Secretary Sylvia Mathews Burwell will not intervene, there will be about 15 million people who from the 30 percent of beneficiaries that will pay for steeper premium.

Centers for Medicare and Medicaid Services spokesperson confirmed that the increase is indeed in the works and the final decisions will be made later this year.

While Medicare Part A covers inpatient hospital services, home health and hospice care, and skilled nursing facilities paid by the Health Insurance Trust Fund, Part B covers the physician and outpatient hospital services. Meanwhile, Part D covers the cost of prescription drugs.

The higher Part B premium rate would be applicable to some 30 percent of Medicare beneficiaries, including new enrollees during the year, those who do not get a Social Security benefit check, high-income enrollees, and dual Medicare-Medicaid beneficiaries.