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)