2018 Medicare Parts A & B Premiums and Deductibles Announced

Category: Health Issues

November 21, 2017 — The Centers for Medicare & Medicaid Services (CMS) has announced the 2018 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs. Note that the Medicare Open Enrollment period ends Dec. 7 – make sure your choices are up to date.

Medicare Part B Premiums/Deductibles
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 (COLA) in their Social Security benefits next year. Individuals with income over $85,000 or couples earning more than $170,000 pay more for Part B, and those premiums will increase about 5% in 2018. Medicare Part B covers physician services, outpatient hospital services, certain home health services, durable medical equipment, and other items.

CMS Administrator Seema Verma commented: “Next year, no beneficiary protected by the hold-harmless provision will see a Part B premium increase that is greater than the increase in their Social Security benefits. We encourage Medicare beneficiaries to explore their options to make an informed choice between Original Medicare and Medicare Advantage before Open Enrollment ends on December 7.”

CMS recently released the benefit, premium, and Star Ratings information for Medicare health and drug plans which shows that there will be more health coverage choices, improved access to high-quality health choices, and decreased premiums in 2018. CMS estimates that the Medicare Advantage average monthly premium will decrease by $1.91 (about 6 percent) in 2018, from an average of $31.91 in 2017 to $30. More than three-fourths (77 percent) of Medicare Advantage enrollees remaining in their current plan will have the same or lower premium for 2018. The average basic premium for a Medicare prescription drug plan in 2018 is projected to decline to an estimated $33.50 per month. This represents a decrease of approximately $1.20 below the average basic premium of $34.70 in 2017. The Medicare prescription drug plan average basic premium is projected to decline for the first time since 2012.

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.

Medicare Part A Premiums/Deductibles
Medicare Part A covers inpatient hospital, skilled nursing facility, and some home health care services. About 99 percent 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 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.

Want more details?
Here is a more detailed Fact Sheet on the 2018 Medicare Parts A & B premiums and deductibles.

Comments? Please share your thoughts in the Comments section below.

For further reading:
Medicare Advantage vs. Original Medicare: Decide Now As Open Enrollment Ends Dec. 7




Posted by Admin on November 21st, 2017

4 Comments »

  1. Everyone I know that currently receives social security has been notified of an increase in their Medicare premium from $109 to $134 monthly. The December AARP newsletter came out with information on Medicare 2018 Part B Premiums. Their article states “If you are on Medicare and collecting Social Security (which pays your Part B premiums), you’ll likely pay $109 a month for 2018 because of a law that prevents Medicare premiums from cutting into Social Security benefits.” I’m confused; why did my premium increase as well as other folks I know? Comments?

    by Gene Smith — December 13, 2017

  2. Gene,
    Same goes for me. Just received the notice from SS this week. So much for our 2% raise!!

    by Jim C — December 14, 2017

  3. For years, every time they increase Social Security payments, they take it away by raising Medicare.

    by Sharon Alexander — December 14, 2017

  4. For more on this see this USAToday article. If you are already taking Social Security the COLA goes to take care of the Medicare increase. This news is better for you than it is for people who are not already on SS; they have to pay the extra Medicare premium and get no relief. Medicare premiums have to increase sometimes to pay 25% of the estimated cost of actual Part B.
    https://www.usatoday.com/story/money/personalfinance/retirement/2017/10/13/medicare-premiums-might-devour-your-increased-2018-social-security-benefit/761925001/

    by Admin — December 14, 2017

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