2017 Medicare Part A (Hospital) Monthly Premium & Deductible
You usually don’t pay a monthly Premium
for Medicare Part A coverage if you or your spouse paid Medicare taxes while working.
If you aren’t eligible for premium-free Part A, you may be able to buy Medicare Part A if you meet one of the following conditions:
- You’re 65 or older, and you have (or are enrolling in) Part B and meet the citizenship and residency requirements.
- You’re under 65, disabled, and your premium-free Part A coverage ended because you returned to work. (If you’re under 65 and disabled, you can continue to get premium-free Part A
for up to 8 1/2 years after you return to work.)
The chart below shows the annual Medicare Part A deductible and the Medicare Part A monthly premium for people who do not qualify for premium-free Part A.
|Medicare Part A Premium and Part A Deductible
Medicare Part A Late Enrollment Penalty
If you aren’t eligible for premium-free Part A, and you don’t buy it when you’re first eligible, your monthly premium may go up 10%. You will have to pay the higher premium for twice the number of years you could have had Part A, but didn’t sign-up. For example, if you were eligible for Part A for 2 years but didn’t sign-up, you will have to pay the higher premium for 4 years. Usually, you don’t have to pay a penalty if you meet certain conditions that allow you to sign up for Part A during a Special Enrollment Period. If you aren’t eligible for premium-free Part A, and you don’t buy it
when you’re first eligible, your monthly premium may go up 10%.
You will have to pay the higher premium for twice the number of
years you could have had Part A, but didn’t sign-up. For example,
if you were eligible for Part A for 2 years but didn’t sign-up, you
will have to pay the higher premium for 4 years. Usually, you
don’t have to pay a penalty if you meet certain conditions that
allow you to sign up for Part A during a Special Enrollment
Period. Read more under Medicare Part A Special Enrollment
2017 Medicare Part B (Medical) Monthly Premium & Deductible
2017 Medicare Part B Deductible
CMS announced that the annual deductible for all Part B beneficiaries will be $183 in 2017, an increase of $17 from the 2016 Part B annual deductible of $166.
How Much Does Medicare Part B Coverage Cost?
You pay the Medicare Part B premium each month. Most people will pay up to the standard premium amount. However, if your modified adjusted gross income (AGI) as reported on your IRS tax return from 2 years ago
(the most recent tax return information provided to Social Security by the IRS) is above a certain amount (see chart below), you may pay more. This is called the income related monthly adjustment amount (IRMAA).
Your modified adjusted gross income is your adjusted gross
income plus your tax exempt interest income. Each year, Social Security will notify you if you have to pay more than the standard premium. The amount you pay can change each year depending on your income. If you have to pay a higher amount for your Part B premium and you disagree, you can appeal the IRMAA
2017 Medicare Part B Premium
In October 2016, the Social Security Administration announced a 0.3 percent cost-of-living adjustment (COLA) for 2017 Social Security benefits - which translates into about a $5 increase for the average Medicare Part B beneficiary. Since the Social Security law includes a "hold-harmless" provision preventing Medicare Part B premiums from increasing faster than Social Security benefits, about 70 percent of the people with Medicare Part B will be "held harmless" from any increase in 2017 Part B premiums and will effectively pay the same monthly premium as last year - after taking the 0.3 percent COLA increase into account. This means that the monthly Medicare Part B premium will increase from $104.90 in 2016 to an average of around $109 per month in 2017 for most Medicare Part B beneficiaries. (The actual increase in Medicare Part B premiums will depend on a Medicare beneficiary's Social Security benefits, with higher earners paying more than $109 and people with lower Social Security benefits paying less than $109 per month.)
Medicare beneficiaries not subject to the "hold harmless" provision will pay $134. Medicare Part B beneficiaries not subject to the "hold harmless" provision are:
- those not collecting Social Security benefits,
- those who will enroll in Part B for the first time in 2017,
- dual eligible beneficiaries who have their premiums paid by Medicaid, and
- beneficiaries who pay an additional income-related premium.
These groups account for about 30 percent of the 52 million Americans expected to be enrolled in Medicare Part B in 2017.
Since 2007, beneficiaries with higher incomes have paid higher Part B monthly premiums. These income-related monthly adjustment amount (IRMAA) affect fewer than 5 percent of people with Medicare. To learn more, see our article: Roughly a 4.5% increase in the 2017 Income Related Medicare Adjustment Amounts (IRMAA) for Medicare beneficiaries with higher annual incomes.
The IRMAA, additional amounts, and total Part B premiums for high income beneficiaries for 2017 are shown in the following table. The "You Pay" column includes the IRMAA amount.
|If Your Yearly Income Is
|File Individual Tax Return
||File Joint Tax Return
|Less than or equal to $85,000 and you are subject to "hold harmless"
||Less than or equal to $170,000 and you are subject to "hold harmless"
||About the same as you paid in 2016 when considering your 0.3 percent Social Security benefit COLA - the average premium would be around $109
|Less than or equal to $85,000 and you are NOT subject to "hold harmless"
||Less than or equal to $170,000 and you are NOT subject to "hold harmless"
|$85,001 - $107,000
||$170,000 - $214,000
|$107,001 - $160,000
||$214,000 - $320,000
|$160,001 - $214,000
||$320,000 - $428,000
|Greater than $214,000
||Greater than $428,000
|*If you pay a late-enrollment Penalty, your monthly premium is higher.
Medicare Part B Late Enrollment Penalty
If you don’t sign up for Part B when you’re first eligible, you may have to pay a late enrollment penalty for as long as you have Medicare. Your monthly premium for Part B may go up 10% for each full 12-month period that you could have had Part B, but didn’t sign up for it. Usually, you don’t pay a late enrollment penalty if you meet certain conditions that allow you to sign up for Part B during a special enrollment period
Example: Mr. Smith’s initial enrollment period ended September 30, 2013. He waited to sign up for Part B until the General Enrollment Period in March 2016. His Part B premium penalty is 20%. (While Mr. Smith waited a total of 30 months to sign up, this included only two full 12-month periods.)
Ways to Pay
If you get Social Security, RRB, or Civil Service benefits, your Part B premium will get deducted from your benefit payment. If you don’t get these benefit payments and choose to sign up for Part B, you will get a bill. If you choose to buy Part A, you will always get a bill for your premium. You can mail your premium payments to the Medicare Premium Collection Center, P.O. Box 790355, St. Louis, Missouri 63179-0355. If you get a bill from the RRB, mail your premium payments to RRB, Medicare Premium Payments, P.O. Box 9024, St. Louis, Missouri 63197-9024.
2017 Part C (Medicare Advantage) Monthly Premium & Deductible
plan premiums*, deductibles, and benefits will depend on the Medicare Advantage plans available in your service area (county or ZIP code). Along with your Medicare Advantage plan premium, you must continue to pay your Part B premium (and Part A premium if you do not receive your Medicare Part A coverage premium-free).
The 2017 Medicare Advantage plan premiums range from $0 to $364
*If you pay a late-enrollment Penalty
, your monthly premium is higher.
2017 Part D (Medicare Prescription Drug Plan) Monthly Premium & Deductible
Medicare Prescription Drug Plan (Part D)
premiums*, deductibles, and benefits vary by plan and state. Remember that you can receive Part D prescription drug coverage from a stand-alone Medicare Part D plan (PDP) or a Medicare Advantage plan that includes drug coverage (MAPD).
The 2017 Part D plan premiums range from $12 to $179
The 2017 standard Part D plan deductible is $400
, however the actual plan deductible can be anywhere from $0 to $400
*If you pay a late-enrollment Penalty
, this amount is higher.
(Primary Source: Centers for Medicare and Medicaid Services - Medicare and You Handbook. This content may have been enhanced by Q1Group LLC to include further examples, explanations, and links.)