SummaryOn Oct. 28, CMS released the calendar year (CY) 2014 benefit parameters for Medicare Parts A and B, which cover hospital inpatient and all outpatient drugs and services, and begins Jan. 1, 2014.
Part A premiums for CY 2014 for the uninsured and aged beneficiaries (those aged 65+ who are not otherwise eligible for Medicare Part A) will be $426, a 3.4 percent decrease from CY 2013. Other disabled individuals who have exhausted other entitlement will experience $234 Part A premiums. The inpatient hospital deductible will be $1,216, a 2.7 percent increase in deductible from CY 2013. Additional inpatient hospital coinsurance amounts include a daily coinsurance for days 61 – 90 ($304), a daily coinsurance for lifetime reserve days ($608), and skilled nursing facility coinsurance ($152). Part B premiums and deductibles will remain the same at $104.90 and $147.00, respectively.
Medicare Part A and Part B premiums have either decreased or stayed constant over the past three years. As the government continues to realize savings associated with value-based healthcare, they will continue to pass such savings on to Medicare beneficiaries in the form of lowered premiums and deductibles. The benefit parameters outlined for 2014 in both Medicare Parts A and B mirror government efforts to lower overall beneficiary spending, as seen through Part D closing of the donut hole. Since beneficiary deductibles remain stable in 2014, CMS is likely to place continued scrutiny on spending for high cost physician-administered drugs.