26 November 2017

2018 Medicare Part B Premiums & Costs

The Centers for Medicare and Medicaid Services (CMS) recently announced the 2018 Medicare Part B premiums.  In addition, the Medicare Part A deductible and coinsurance amounts, and Part B deductible were released.  Check out the summary below:

Medicare Part B Premiums

Those who have been “held harmless” from higher Part B premiums in the last two years will continue to receive protection from premium increases (roughly 70% of Medicare beneficiaries).  However, some will still see a premium increase up to the standard $134/mo Part B premium.  Here’s why:

There is a 2% COLA (Cost of Living Adjustment) for Social Security recipients in 2018.  By law, these individuals cannot experience a Medicare Part B premium increase larger than the increase in their Social Security benefit amount.  But CMS estimates that 42% of those in this category will see their premiums jump from their current premium of about $109/mo in 2017 to $134/mo in 2018.  This is because their monthly Social Security benefit increase will be larger than their projected Part B premium increase.

Now, for the remaining 30% of Medicare beneficiaries, there will be a $134/mo standard premium (could be higher due to income).

Since 2007, Medicare beneficiaries with higher incomes have paid higher Part B monthly premiums (and an extra amount on Part D…on top of any Part D prescription drug plan premium to an insurance carrier).  Keep in mind — Regardless of whether Medicare beneficiaries are receiving Social Security benefits, if their income is above certain limits, they will pay a higher Part B premium.  The high income rules trump the hold harmless rules mentioned above.

Here is a table summarizing the 2018 Part B monthly premiums for all income levels .

If your yearly income in 2016 was… You pay (in 2018)
File Individual Tax Return File Joint Tax Return FIle Married & Separate Tax Return Monthly Premium
$85,000 or less $170,000 or less $85,000 or less $134.00
$85,001 up to $107,000 $170,001 up to $214,000 N/A $187.50
$107,001 up to $133,500 $214,001 up to $267,000 N/A $267.90
$133,501 up to $160,000 $267,001 up to $320,000 N/A $348.30
above $160,000 above $320,000 above $85,000 $428.60

To see the Part D IRMAA (Income Related Monthly Adjustment Amount) that corresponds with the above Part B premiums, go here.

Medicare Part A (hospital) Deductible and Coinsurance Amounts

  • Part A deductible: $1,340
  • Part A coinsurance (inpatient hospital stay…days 61-90): $335 per day
  • Part A coinsurance (inpatient hospital stay…lifetime reserve days): $670 per day
  • Skilled Nursing Facility coinsurance (days 21-100): $167.50 per day

Medicare Part B (medical) Deductible

  • Part B deductible: $183 (no change from 2017)

To see the full details, go here and here.



Back to List

Insurance Solutions

We have a lot to offer. Read about all of our insurance solutions below.