2018 Medicare Parts A & B Premiums and Deductibles Announced

[TwoCents]

2017-11-17 - Centers for Medicare & Medicaid Services

The standard monthly premium for Medicare Part B enrollees will be $134 for 2018, the same amount as in 2017. Some beneficiaries who were held harmless against Part B premium increases in prior years will have a Part B premium increase in 2018, but the premium increase will be offset by the increase in their Social Security benefits next year.

CMS also announced that the annual deductible for all Medicare Part B beneficiaries will be $183 in 2018, the same annual deductible in 2017. Premiums and deductibles for Medicare Advantage and Medicare Prescription Drug plans are already finalized and are unaffected by this announcement.

The Medicare Part A annual inpatient hospital deductible that beneficiaries pay when admitted to the hospital will be $1,340 per benefit period in 2018, an increase of $24 from $1,316 in 2017.

 

[jdeasy]

Is that saying that the people paying $109/mo now will begin paying $134?

 

[Chazm]

Is that saying that the people paying $109/mo now will begin paying $134?

I’m assuming yes. Unless of course their COLA doesn’t go up $25 at least.

 

[WCMason]

Is that saying that the people paying $109/mo now will begin paying $134?

That’s what it means. Quite the turnabout. For two years only those getting SS benefits were held harmless from the Part B increase and now they’re the only ones getting the increase.

Tough break for those who decided to take SS benefits earlier than they had planned so they could avoid the Part B increase, unaware they were trading a temporary decrease in Part B for a permanent reduction in their SS benefits. I met a few who did that, and warned off a few who were considering it.

 

[kgmom219]

Is that saying that the people paying $109/mo now will begin paying $134?

NO.

The COLA came in at 2%. Under the Hold Harmless provision, their Part B premium increase cannot exceed their COLA.

If you get $1300, then your increase takes you to $1320. Which will be swallowed by the Part B premium.

The correct answer to this client question is "The Part B premium jumped in 2016 from $104 to $126; however, you did not receive a COLA that year. Which means that unless there is a massive jump in the COLA, you will never catch up. Just be prepared that everytime there is a Social Security increase, you will not actually see an increase in your benefits. It will be swallowed by the current Part B premium costs."

Even the 2016 enrollees haven't caught up. The ones that get burned are the ones not taking Social Security yet. Which is most of my clients under age 70.

 

[jdeasy]

NO.

The COLA came in at 2%. Under the Hold Harmless provision, their Part B premium increase cannot exceed their COLA.

If you get $1300, then your increase takes you to $1320. Which will be swallowed by the Part B premium.

The correct answer to this client question is "The Part B premium jumped in 2016 from $104 to $126; however, you did not receive a COLA that year. Which means that unless there is a massive jump in the COLA, you will never catch up. Just be prepared that everytime there is a Social Security increase, you will not actually see an increase in your benefits. It will be swallowed by the current Part B premium costs."

Even the 2016 enrollees haven't caught up. The ones that get burned are the ones not taking Social Security yet. Which is most of my clients under age 70.

What you are saying is my understanding of the hold harmless rule. The CMS announcement seems counter to that.

That's why I asked.

 

[kgmom219]

That's because they want to make it more difficult on the consumer. Read the 27 pager. Its lots of fun!

And on that subject, CMS signed off on the 27th, HHS on the 1st. Why are we just now getting it?