2017 Medicare Part B Premiums Announced

By on November 12, 2016 in Pay & Benefits, Retirement with 0 Comments

Medicare paper headline on hundred dollar bills

The Centers for Medicare & Medicaid Services (CMS) have announced next year’s premiums for Medicare.

For about 70% of beneficiaries, the “hold harmless” provision will keep the average premium to about $109, compared to the $104.90 that it has been for the past 4 years (a roughly 4% increase) despite the low Social Security COLA that was announced in October for the coming year.

For the remaining beneficiaries, the standard monthly Medicare Part B premium will be $134, a 10% increase over 2016’s monthly premium of $121.80. Because of the “hold harmless” provision covering the other 70 percent of beneficiaries, premiums for the remaining 30 percent must cover most of the increase in Medicare costs for 2017 for all beneficiaries.

Medicare Part B beneficiaries not subject to the “hold harmless” provision include beneficiaries who do not receive Social Security benefits, those who enroll in Part B for the first time in 2017, those who are directly billed for their Part B premium, those who are dually eligible for Medicaid and have their premium paid by state Medicaid agencies, and those who pay an income-related premium. These groups represent approximately 30 percent of total Part B beneficiaries.

CMS also announced that the annual deductible for all 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.

Since 2007, beneficiaries with higher incomes have paid higher Medicare Part B monthly premiums. These income-related monthly premium rates affect roughly five percent of people with Medicare. The total Medicare Part B premiums for high income beneficiaries for 2017 are shown 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

 

The table below shows Medicare Part B premiums for beneficiaries who are married and lived with their spouse at any time during the taxable year, but file a separate return:

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

 

© 2016 Ian Smith. All rights reserved. This article may not be reproduced without express written consent from Ian Smith.

Tags:

About the Author

Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce. Ian also has a background in web development and does the technical work for the FedSmith.com web site and its sibling sites.

Top