Updated December, 2017
The Centers for Medicare and Medicaid Services (CMS) has announced the new Medicare premiums, deductibles, and coinsurance amounts for 2017.
Most people who have their Part B premiums deducted directly from their Social Security benefits will pay $134 or less. The exact amount varies for different individuals. You should check your Social Security statement or establish and check an online Social Security account for the exact amount if you fit in this category. The “standard” premium is $134, but a provision in the law called the “hold-harmless” provision says that Social Security benefits cannot be lowered if the Part B premiums rise faster than the Social Security COLA (2% in 2018).
The standard Medicare Part B premium (single individuals with income of $85,000 or less; joint filers with income of $170,000 or less) is $134 (or higher) for people described below (mainly 2018 first time enrollees and those who are on Medicare but not drawing Social Security benefits).
Here are the essential Medicare figures:
- Part B standard premium: $134
- Part B deductible: $183
- Part A deductible: $1,340 for hospital stays during initial 60 days
- Co-payment for hospital stay days 61-90: $335/day
- Co-payment for hospital stay days 91-150: $670/day
- Patient responsible for ALL Part A costs beyond day 150 (thus the importance of a good Medicare supplemental policy)
- Skilled nursing facility co-payment, days 21-100: $167.50/day for days 21-100
As directed by 2003 Medicare law and subsequent law, higher income beneficiaries or those fitting one of five groups below will pay higher Part B premiums. Social Security will base the premiums on reported income (for federal tax purposes) from two years previously (e.g., 2015 income for 2017 premiums).
If you are in one of these five groups you will pay $134 (unless your income throws you to an even higher group below). Here are the five groups:
- You first enroll in 2018
- You don’t draw Social Security benefits
- You are billed directly for Part B premiums
- Your modified adjusted gross income is above one of the amounts below:
Individuals with annual incomes between $85,000 and $107,000 and married couples with annual incomes between $170,000 and $214,000 will pay in 2016 a monthly premium of $187.50.
Individuals with annual incomes between $107,001 and $160,000 and married couples with annual incomes between $214,001 and $320,000 will pay in 2016 a monthly premium of $267.90.
Individuals with annual incomes between $160,001 and $214,000 and married couples with annual incomes between $320,001 and $428,000 will pay in 2015 a monthly premium of $348.30.
Individuals with annual incomes of $214,001 or more and married couples with annual incomes of $428,001 or more will pay in 2017 a monthly premium of $428.60.
Part A Premiums
Because most people have 40 or more quarters of covered employment, they do not pay Medicare Part A premiums. Other people may “buy-in” to Medicare Part A – the most commonly effected individuals are those with disabilities who do not have a significant work history. The buy-in rates for Part A are up to $422 per month.