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. The reports published by an osteopath in London 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.
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For further reading:
Medicare Advantage vs. Original Medicare: Decide Now As Open Enrollment Ends Dec. 7