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Medicare Costs for Part B Services Decrease for 2012

California Health Advocates > Medicare Basics > Medicare Costs for Part B Services Decrease for 2012

Posted by Karen Fletcher on November 1, 2011

Medicare costs for 2012 are out, and for the most part, Part B cost-sharing will be less than projected for all beneficiaries in 2012. The Part B deductible will decrease by $22 in 2012, from $162 per year in 2011 to $140 in 2012. In addition, the Part B monthly premium will only slightly increase for those beneficiaries who have not had an increase in the last 2 years. The 3.6% cost-of-living increase for Social Security recipients in 2012 will cause the Part B premium to increase by just $3.50 – from $96.40 in 2011 to $99.90 in 2012. Beneficiaries who were new to Medicare in 2011, however, have been paying $115.40 for their Part B premium. For them, the 2012 premium will actually decrease by $15.50.

These Part B premium reductions directly relate to the slower growth in Part B expenses, due in part to health care reform. The Affordable Care Act’s lower payment rates, reduced payments to private Medicare plans, and increased efforts to fight fraud and abuse all contribute to this trend. Health care reform has also increased Medicare’s value by reducing beneficiary costs for prescription drugs, adding preventive care coverage, and eliminating cost-sharing for most preventive services.

For detailed information on all 2012 Medicare Part A and B cost-sharing, see our fact sheets:

  • Original Medicare: An Overview
  • 2012 Premiums, Coinsurance & Deductibles (Original Fee-for-Service Medicare)

You can also read the Center for Medicare and Medicaid Services (CMS) fact sheet, Medicare Premiums and Deductibles for 2012.

Filed Under: Medicare Basics

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About Karen Fletcher

Our blogger Karen J. Fletcher is CHA's publications consultant. She provides technical expertise, writing and research on Medicare, health disparities and other health care issues. With a Masters in Public Health from UC Berkeley, she serves in health advocacy as a trainer and consultant. See her current articles.

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