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December 7, 2016

2017 Medicare Premiums and Deductibles (article)

The Centers for Medicare & Medicaid Services released the 2017 premiums and deductibles for the Medicare Part A and Part B programs.  Following are highlights of the changes.

 

Medicare Part A - Premium and Deductible

  • Generally, there is no monthly Part A premium for those with 40+ quarters of Medicare-covered employment.  Individuals who buy Part A will pay up to $413 each month in 2017.
  • Part A deductibles in 2017 will be $1,316 for first 60 days of inpatient care; an additional $329 coinsurance per day for days 61 through 90, and additional $658 per day coinsurance beyond the 90th day.

Medicare Part B - Premium and Deductible

  • The annual deductible for Part B beneficiaries will increase from $166 (in 2016) to $183 in 2017.
  • With regard to Part B premium, because there was a 0.03% Social Security cost of living increase for 2017, the monthly premium for most individuals with Medicare Part B will increase from $104.90 to $109 in 2017.  The amount of monthly premium is adjusted based on income (see chart below):

Beneficiaries who file an individual tax return with income:

Beneficiaries who file a joint tax return with income:

Income-related monthly adjustment amount

Total monthly premium amount

≤ $85,000

≤ $170,000

$0.00

$134

>$85,000 and ≤ $107,000

> $170,000 and ≤ $214,000

53.50

187.50

> $107,000 and ≤ $160,000

> $214,000 and ≤ $320,000

133.90

267.90

> $160,000 and ≤ $214,000

> $320,000 and ≤ $428,000

214.30

348.30

> $214,000

> $428,000

294.60

428.60

 

Part B premiums for individuals who are married, live with their spouse at any time during the taxable year, and file a separate return are:

 

Beneficiaries who are married and lived with their spouse at any time during the year, but file a separate tax return from their spouse:

Income-related monthly adjustment amount

Total monthly premium amount

≤ $85,000

$0.00

$134

> $85,000 and ≤ $129,000

214.30

348.30

> $129,000

294.60

428.60

 

 

The monthly premium for Medicare Part C and/or Part D coverage vary by the selected plan.

 

Additional information about Medicare premium and deductibles is available from Medicare’s 2016 & 2017 Costs at a Glance and CMS press release

The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.   

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