Modest Increases for 2017 Medicare Parts A & B Premiums and Deductibles

With the Oct. 18 announcement by the Social Security Administration that the cost-of-living adjustment (COLA) for Social Security benefits would only be 0.3% for 2017 that triggered a provision designed to protect you from a large increase to Part B premiums. This provision protects about 70% of beneficiaries. Among this group, the average 2017 premium will be about $109.00, compared to $104.90 for the past four years.

For the remaining 30% of beneficiaries, the standard monthly premium for Medicare Part B will be $134.00 for 2017, a 10% increase from the 2016 premium of $121.80.Those not subject to the “hold harmless” provision include beneficiaries who

• do not receive Social Security benefits,
• enroll in Part B for the first time in 2017,
• are directly billed for their Part B premium,
• are eligible for Medicaid and have their premium paid by state Medicaid agencies, and
• pay an income-related premium.

These groups represent approximately 30% of total Part B beneficiaries.

Additionally, it was announced that the annual deductible for all Medicare Part B beneficiaries will be $183 in 2017, compared to $166 in 2016.

Here is the total Medicare Part B premiums for high income beneficiaries for 2017 are shown in the following table:

Premiums for beneficiaries who are married and lived with their spouse at any time during the taxable year, but file a separate return, are as follows:

Medicare Part A Premiums/Deductibles

Medicare Part A covers inpatient hospital, skilled nursing facility, and some home health care services. Most people don’t pay a monthly premium for Part A.

The information for this blog post was gathered from cms.gov

Give us a call if you have any questions. Remember, we’re here to help!