Medicare Changes in 2018 – Premiums and Costs

The post below describes 2018 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 2018

Medicare changes in 2018 for Part A include:

  • Part A premium 
    •  For individuals with 40 or more quarters of Medicare-covered employment: $0 per month ($0 in 2017)
    • For individuals with 30-39 quarters of Medicare-covered employment: $232 per month ($227 in 2017)
    • For individuals with less than 30 quarters of Medicare-covered employment: $422 per month ($413 in 2017)
  • Hospital Inpatient Stay
    • Deductible for days 1-60 of each benefit period: $1,340 (1,316 in 2017)
    • Coinsurance per day for days 1-60 of each benefit period: $0 ($0 in 2017)
    • Coinsurance per day for days 61-90 of each benefit period: $335 ($329 in 2017)
    • For days 91 and beyond: $670 per lifetime reserved day ($658 in 2017)
  • Mental Health Inpatient Stay
    • Deductible for days 1-60 of each benefit period: $1,340 (1,316 in 2017)
    • Coinsurance per day for days 1-60 of each benefit period: $0 ($0 in 2017)
    • Coinsurance per day for days 61-90 of each benefit period: $335 ($329 in 2017)
    • For days 91 and beyond: $670 per lifetime reserved day ($658 in 2017)
  • Skilled Nursing Facility Stay
    • $0 for the first 20 days of each benefit period ($0 in 2017)
    • $167.50 per day for days 21-100 of each benefit period ($164.50 in 2017)
    • Days 101 and beyond: all costs (all costs in 2017).

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

Medicare Part B Premiums and Costs in 2018

Medicare 2018 changes for Part B include:

  • Part B annual deductible:
    •  $183 ($183 in 2017)
  • Part B premium
    In 2018, the standard Part B premium amount will be $134.00 (or higher depending on your income). However, some people who get Social Security benefits will pay less than this amount: $130 on average in 2018 ($109 on average in 2017).You’ll pay the standard premium amount (or higher) 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.
    • 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 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 $133,500 for individual tax returns or $214,001 up to $267,000 for joint tax returns: $267.90 per month
    • If modified adjusted gross income is $133,501 up to $160,000 for individual tax returns or $267,001 up to $320,000 for joint tax returns: $348.30 per month
    • If modified adjusted gross income is above $160,000 for individual tax returns or above $320,000 for joint tax returns: $428.60 per month

Visit Medicare costs at a glance more information.

Medicare Changes in 2018 for the Part D

Medicare changes in 2018 for Part D include:

  • Yearly Deductible
    • You are responsible for the first $405 of drug costs ($400 in 2017)
  • 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 $3,750 ($3,700 in 2017).
  • Coverage Gap
    • Once the total cost of prescriptions has reached $3,750, you are responsible for ALL drug costs until you’ve spent $5,000 out-of-pocket ($4,950 in 2017). During the gap period, you’ll pay the following amounts for your prescriptions: 35% from the price of brand drugs (40% in 2017) and 44% from the price of generic drugs (51% in 2017).
  • Catastrophic Coverage
    • Catastrophic coverage starts once you’ve spent $5,000 out-of-pocket ($4,950 in 2017). From then until the end of the calendar year, you are paying the greater of either a 5% coinsurance (the same as in 2017) or a small copayment: $3.35 for generic drugs ($3.30 in 2017) or $8.35 for brand name drugs ($8.25 in 2017).
  • Low Income Subsidy (LIS)
    • Maximum copayment for people qualified for LIS programs is $3.35 for generic or preferred drugs ($3.30 in 2017) or $8.35 for brand name drugs ($8.35 in 2017).

Medicare Part D Premium in 2018

  • Part D premium (based on on your filing status and yearly income in 2016)

    • 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 + $13.00.
    • If modified adjusted gross income is $107,001 up to $133,500 for individual tax returns or $214,001 up to $267,000 for joint tax returns, then you pay your plan premium + $33.60.
    • If modified adjusted gross income is $133,501 up to $160,000 for individual tax returns or $267,001 up to $320,000 for joint tax returns, then you pay your plan premium + $54.20.
    • If modified adjusted gross income is above $160,000 for individual tax returns or above $320,000 for joint tax returns, then you pay your plan premium + $74.80.

Visit Medicare costs at a glance more information.

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