The Cen­ters for Medicare & Med­ic­aid Ser­vices (CMS) has announced that the stan­dard month­ly Part B pre­mi­um in 2018 will remain $134 (or high­er, depend­ing on your income). In 2017, most Medicare ben­e­fi­cia­ries who received Social Secu­ri­ty ben­e­fits paid a low­er month­ly pre­mi­um ($109, on aver­age). How­ev­er, this is like­ly to change in 2018.

Due to a pro­vi­sion in the Social Secu­ri­ty Act called the “hold harm­less” rule, Medicare pre­mi­ums for exist­ing ben­e­fi­cia­ries can’t increase faster than their Social Secu­ri­ty ben­e­fits. Over the past few years, Social Secu­ri­ty ben­e­fits did­n’t increase much because of low or no cost-of-liv­ing increas­es. How­ev­er, there will be a 2% cost-of-liv­ing increase for Social Secu­ri­ty ben­e­fits in 2018. This increase will cause more peo­ple to pay high­er month­ly Medicare Part B pre­mi­ums clos­er to the stan­dard ($134) amount. The Social Secu­ri­ty Admin­is­tra­tion (SSA) will tell you the exact amount of your Part B pre­mi­um in 2018.

Approx­i­mate­ly 30% of Medicare ben­e­fi­cia­ries are not pro­tect­ed by the hold harm­less rule, and may pay the stan­dard pre­mi­um or more for Medicare Part B. You fall into this group if:

  • You enroll in Part B for the first time in 2018.
  • You don’t get Social Secu­ri­ty ben­e­fits.
  • You’re direct­ly billed for your Part B pre­mi­ums (they aren’t tak­en out of your Social Secu­ri­ty ben­e­fits).
  • You have Medicare and Med­ic­aid, and Med­ic­aid pays your pre­mi­ums.
  • Your mod­i­fied adjust­ed gross income, as report­ed on your fed­er­al income tax return from two years ago, is above a cer­tain amount.*

The tables below show the Part B pre­mi­um that applies if you’re in this group.

 

Ben­e­fi­cia­ries who file an indi­vid­ual income tax return with income that is: Ben­e­fi­cia­ries who file a joint income tax return with income that is: Ben­e­fi­cia­ries who file an income tax return as mar­ried fil­ing sep­a­rate­ly with income that is: Month­ly pre­mi­um in 2017:
$85,000 or less $170,000 or less $85,000 or less $134
Above $85,000 up to $107,000 Above $170,000 up to $214,000 N/A $187.50
Above $107,000 up to $160,000 Above $214,000 up to $320,000 N/A $267.90
Above $160,000 up to $214,000 Above $320,000 up to $428,000 Above $85,000 up to $129,000 $348.30
Above $214,000 Above $428,000 Above $129,000 $428.60

 

Ben­e­fi­cia­ries who file an indi­vid­ual income tax return with income that is: Ben­e­fi­cia­ries who file a joint income tax return with income that is: Ben­e­fi­cia­ries who file an income tax return as mar­ried fil­ing sep­a­rate­ly with income that is: Month­ly pre­mi­um in 2018:
$85,000 or less $170,000 or less $85,000 or less $134
Above $85,000 up to $107,000 Above $170,000 up to $214,000 N/A $187.50
Above $107,000 up to $133,500 Above $214,000 up to $267,000 N/A $267.90
Above $133,500 up to $160,000 Above $267,000 up to $320,000 N/A $348.30
Above $160,000 Above $320,000 Above $85,000 $428.60

*Ben­e­fi­cia­ries with high­er incomes have paid high­er Medicare Part B pre­mi­ums since 2007. To deter­mine if you’re sub­ject to income-relat­ed pre­mi­ums, the SSA uses the most recent fed­er­al tax return pro­vid­ed by the IRS. Gen­er­al­ly, the tax return you filed in 2017 (based on 2016 income) will be used to deter­mine if you will pay an income-relat­ed pre­mi­um in 2018. You can con­tact the SSA at (800) 772‑1213 if you have new infor­ma­tion to report that might change the deter­mi­na­tion and low­er your pre­mi­um (for exam­ple, you lost your job and your income has gone down, or you’ve filed an amend­ed income tax return).

Oth­er Medicare costs

Oth­er Medicare Part A and Part B costs in 2018 include the fol­low­ing:

  • The annu­al Medicare Part B deductible for Orig­i­nal Medicare will be $183, the same as in 2017.
  • The month­ly Medicare Part A (hos­pi­tal insur­ance) pre­mi­um for those who need to buy cov­er­age will cost up to $422, up from $413 in 2017. How­ev­er, most peo­ple don’t pay a pre­mi­um for Medicare Part A.
  • The Medicare Part A deductible for inpa­tient hos­pi­tal­iza­tion will be $1,340, up from $1,316 in 2017. Ben­e­fi­cia­ries will pay an addi­tion­al dai­ly coin­sur­ance amount of $335 for days 61 through 90, up from $329 in 2017, and $670 for stays beyond 90 days, up from $658 in 2017.
  • Ben­e­fi­cia­ries in skilled nurs­ing facil­i­ties will pay a dai­ly coin­sur­ance amount of $167.50 for days 21 through 100 in a ben­e­fit peri­od, up from $164.50 in 2017.

To view the Medicare fact sheet announc­ing these and oth­er fig­ures, vis­it medicare.gov.

Con­tent pro­vid­ed by: Broad­ridge Finan­cial Solu­tions, Inc.

Decem­ber 2017