Medicare Changes in 2017 – Premiums and Costs

he post below describes 2017 Medicare changes for Premiums and Costs for Medicare Part A, Part B as well as for Part D.

Medicare Part A Premiums and Costs in 2017

Medicare changes in 2017 for Part A include:

  • Part A premium (for people who pay a premium)
    • For individuals with 30-39 quarters of Medicare-covered employment: $227 per month ($226 in 2016)
    • For individuals with less than 30 quarters of Medicare-covered employment: $413 per month ($411 in 2016)
  • Hospital Inpatient Stay
    • Deductible for days 1-60 of each benefit period: $1,316 (1,288 in 2016)
    • Coinsurance per day for days 61-90 of each benefit period: $329 ($322 in 2016)
    • For days 91 and beyond: $658 per lifetime reserved day ($644 in 2016)
  • Mental Health Inpatient Stay
    • Deductible for days 1-60 of each benefit period: $1,316 (1,288 in 2016)
    • Coinsurance per day for days 61-90 of each benefit period: $329 ($322 in 2016)
    • For days 91 and beyond: $658 per lifetime reserved day ($644 in 2015)
  • Skilled Nursing Facility Stay
    • $0 for the first 20 days of each benefit period
    • $164.50 per day for days 21-100 of each benefit period ($161 in 2016)
    • All costs for each day after day 100 in a benefit period

For more information, please visit Medicare costs at a glance.

Medicare Part B Premiums and Costs in 2017

Medicare 2017 changes for Part B include:

  • Part B annual deductible:
    •  $183 ($166 in 2016)
  • Part B premium
    In 2017, the standard Part B premium amount will be $134.00 (or higher depending on your income). Most people who get Social Security benefits will continue to pay a Part B premium of $109 each month. You’ll pay a different premium amount in 2017 if:

    • You enroll in Part B for the first time in 2017.
    • You don’t get Social Security benefits.
    • You’re directly billed for your Part B premiums.
    • You have Medicare and Medicaid, and Medicaid pays your premiums.
    • Your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount.
  • Part B premium for higher income, if standard premium is $134.00

    • If modified adjusted gross income is $85,000 or less for individual tax returns or $170,000 or less for joint tax returns: $134.00 per month
    • If modified adjusted gross income is $85,001 to $107,000 for individual tax returns or $170,001 to $214,000 for joint tax returns: $187.50 per month
    • If modified adjusted gross income is $107,001 up to $160,000 for individual tax returns or $214,001 up to $320,000 for joint tax returns: $267.90 per month
    • If modified adjusted gross income is $160,001 up to $214,000 for individual tax returns or $320,001 up to $428,000 for joint tax returns: $348.30 per month
    • If modified adjusted gross income is above $214,001 for individual tax returns or above $428,001 for joint tax returns: $428.60 per month

Visit Medicare costs at a glance more information.

Medicare Changes in 2017 for the Part D

Medicare changes in 2017 for Part D include:

  • Yearly Deductible
    • You are responsible for the first $400 of drug costs ($360 in 2016)
  • Initial Coverage
    • The initial coverage (when you typically pay 25% of drug costs) starts after you’ve satisfied the yearly deductible and continues until the total drug costs (paid by you and your insurance company) reach $3,700 ($3,310 in 2016).
  • Coverage Gap
    • Once the total cost of prescriptions has reached $3,700, you are responsible for ALL drug costs until you’ve spent $4,950 out-of-pocket ($4,850 in 2016). During the gap period, you’ll get the following discounts on your prescriptions: 60% from the price of brand drugs (55% in 2016) and 49% from the price of generic drugs (42% in 2016).
  • Catastrophic Coverage
    • Catastrophic coverage starts once you’ve spent $4,950 out-of-pocket. From then until the end of the calendar year, you are paying the greater of either a 5% coinsurance (the same as in 2016) or a small copayment: $3.30 for generic drugs ($2.95 in 2016) or $8.25 for brand name drugs ($7.40 in 2016).
  • Low Income Subsidy (LIS)
    • Maximum copayment for people qualified for LIS programs is $3.30 for generic or preferred drugs ($2.95 in 2016) or $8.25 for brand name drugs ($7.40 in 2016).

Medicare Part D Premium in 2017

  • Part D premium
    • If modified adjusted gross income is $85,000 or less for individual tax returns or $170,000 or less for joint tax returns, then you pay your plan premium.
    • If modified adjusted gross income is $85,001 to $107,000 for individual tax returns or $170,001 to $214,000 for joint tax returns, then you pay your plan premium + $13.30 ($12.70 in 2016).
    • If modified adjusted gross income is $107,001 up to $160,000 for individual tax returns or $214,001 up to $320,000 for joint tax returns, then you pay your plan premium + $34.20 ($32.80 in 2016).
    • If modified adjusted gross income is $160,001 up to $214,000 for individual tax returns or $320,001 up to $428,000 for joint tax returns, then you pay your plan premium + $55.20 ($52.80 in 2016).
    • If modified adjusted gross income is above $214,001 for individual tax returns or above $428,001 for joint tax returns, then you pay your plan premium + $76.20 ($72.90 in 2016).

Visit Medicare costs at a glance more information.

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