2017 Original Medicare (Part A & Part B) Premiums and Deductibles Announced
On Thursday, November 10th, the Centers for Medicare & Medicaid Services (CMS) announced the 2017 premiums for the Medicare inpatient (Part A) and physician and outpatient hospital services (Part B) programs.
Medicare Part B Premiums/Deductibles
Original Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment and other items. On October 18, 2016, the Social Security Administration announced that the cost-of-living adjustment (COLA) for Social Security benefits will be 0.3% for 2017.
Because of the low Social Security COLA, a statutory “hold harmless” provision designed to protect seniors, will largely prevent Part B premiums for increasing for 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 Original Medicare Part B will be $134.00 for 2017, a 10% increase from the 2016 premium of $121.80. Because of the “hold harmless” provision covering the 70% of beneficiaries, premiums for the remaining 30% must cover most of the increase in Medicare costs for 2017 for all beneficiaries.
CMS has also announced the annual deductible for all Original Medicare Part B beneficiaries will be $183 in 2017 (compared to $166 in 2016). Premiums and deductibles for Medicare Advantage and prescription drug plans are already finalized and are unaffected by this announcement.
The total Medicare Part B premiums for high income beneficiaries for 2017 are show in the following table:
Beneficiaries who file an individual tax return with income: Beneficiaries who file a joint tax return with income: Income-related monthly adjustment amount Total monthly premium amount
Less than or equal to $85,000 Less than or equal to $170,000 $0.00 $134.00
Greater than $85,000 and less than or equal to $107,000 Greater than $170,000 and less than or equal to $214,000 53.50 187.50
Greater than $107,000 and less than or equal to $160,000 Greater than $214,000 and less than or equal to $320,000 133.90 267.90
Greater than $160,000 and less than or equal to $214,000 Greater than $320,000 and less than or equal to $428,000 214.30 348.30
Greater than $214,000 Greater than $428,000 294.60 428.60
Premiums for beneficiaries who are married and living with their spouse at any time during the year, but file a separate return are shown below:
Beneficiaries who are married and lived with their spouse at any time during the year, but file a separate tax return from their spouse: Income-related monthly adjustment amount Total monthly premium amount
Less than or equal to $85,000 $0.00 $134.00
Greater than $85,000 and less than or equal to $129,000 214.30 348.30
Greater than $129,000 294.60 428.60
Original Medicare Part A Premiums/Deductibles
Original Medicare Part A covers inpatient hospital, skilled nursing facility, and some health care services. About 99% of Medicare beneficiaries do not have a Part A premium since they have at least 40 quarters of Medicare-covered employment.
The Medicare Part A inpatient hospital deductible that beneficiaries pay when admitted to the hospital will be $1,316 per benefit period in 2017 (an increase of $28 from 2016.) The Part A deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period, beneficiaries must pay a coinsurance amount of $329 per day for the 61st – 90th day of hospitalization. Beneficiaries in skilled nursing facilities, the daily coinsurance for 21 days through 100 of extended care services will be $164.50.
Uninsured aged and certain individuals with disabilities who have exhausted other entitlement and who have less than 30 quarters of coverage will pay the full premium, which will be $413 a month.
Part A Deductible and Coinsurance Amounts for Calendar Years 2016 and 2017 by Type of Cost Sharing
Inpatient hospital deductible $1,288 $1,316
Daily coinsurance for 61st-90th Day 322 329
Daily coinsurance for lifetime reserve days 644 658
Skilled Nursing Facility coinsurance 161 164.50
To read the article in it’s entirety from the official CMS press release, please click here.