2016-11-10 - Centers for Medicare & Medicaid Services
2017 Medicare Parts A & B Premiums and Deductibles Announced
- Date
- 2016-11-10
- Title
- 2017 Medicare Parts A & B Premiums and Deductibles Announced
- Contact
- press@cms.hhs.gov
2017 Medicare Parts A & B Premiums
and Deductibles Announced
Today, the Centers for Medicare & Medicaid Services (CMS) announced the
2017 premiums for the Medicare inpatient hospital (Part A) and physician and
outpatient hospital services (Part B) programs.
Medicare Part B Premiums/Deductibles
Medicare Part B covers physician services, outpatient hospital services,
certain home health services, durable medical equipment, and other items.
On October 18, 2016, the Social Security Administration announced that the
cost-of-living adjustment (COLA) for Social Security benefits will be 0.3
percent for 2017. Because of the low Social Security COLA, a statutory ghold
harmlessh provision designed to protect seniors, will largely prevent Part B
premiums from increasing for about 70 percent of beneficiaries. Among this
group, the average 2017 premium will be about $109.00, compared to $104.90 for
the past four years.
For the remaining roughly 30 percent of beneficiaries, the standard monthly
premium for Medicare Part B will be $134.00 for 2017, a 10 percent increase from
the 2016 premium of $121.80. Because of the ghold harmlessh provision covering
the other 70 percent of beneficiaries, premiums for the remaining 30 percent
must cover most of the increase in Medicare costs for 2017 for all
beneficiaries. This year, as in the past, the Secretary has exercised her
statutory authority to mitigate projected premium increases for these
beneficiaries, while continuing to maintain a prudent level of reserves to
protect against unexpected costs. The Department of Health and Human Services
(HHS) will work with Congress as it explores budget-neutral solutions to
challenges created by the ghold harmlessh provision.
gMedicarefs top priority is to ensure that beneficiaries have affordable
access to the care they need,h said CMS Acting Administrator Andy Slavitt. gWe
will continue our efforts to improve affordability, access, and quality in
Medicare.h
Medicare Part B beneficiaries not subject to the ghold harmlessh provision
include beneficiaries who do not receive Social Security benefits, those who
enroll in Part B for the first time in 2017, those who are directly billed for
their Part B premium, those who are dually eligible for Medicaid and have their
premium paid by state Medicaid agencies, and those who pay an income-related
premium. These groups represent approximately 30 percent of total Part B
beneficiaries.
CMS also announced that the annual deductible for all Medicare Part B
beneficiaries will be $183 in 2017 (compared to $166 in 2016). Premiums and
deductibles for Medicare Advantage and prescription drug plans are already
finalized and are unaffected by this announcement.
Since 2007, beneficiaries with higher incomes have paid higher Medicare Part
B monthly premiums. These income-related monthly premium rates affect roughly
five percent of people with Medicare. The total Medicare Part B premiums for
high income beneficiaries for 2017 are shown in the following table:
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 |
Less than or equal to $85,000 |
Less than or equal to $170,000 |
$0.00 |
$134.00 |
Greater than $85,000 and less than or equal to $107,000 |
Greater than $170,000 and less than or equal to $214,000 |
53.50 |
187.50 |
Greater than $107,000 and less than or equal to $160,000 |
Greater than $214,000 and less than or equal to $320,000 |
133.90 |
267.90 |
Greater than $160,000 and less than or equal to $214,000 |
Greater than $320,000 and less than or equal to $428,000 |
214.30 |
348.30 |
Greater than $214,000 |
Greater than $428,000 |
294.60 |
428.60 |
Premiums for beneficiaries who are married and lived with their spouse at any
time during the taxable year, but file a separate return, are as follows:
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 |
Less than or equal to $85,000 |
$0.00 |
$134.00 |
Greater than $85,000 and less than or equal to $129,000 |
214.30 |
348.30 |
Greater than $129,000 |
294.60 |
428.60 |
Medicare Part A Premiums/Deductibles
Medicare Part A covers inpatient hospital, skilled nursing facility, and some
home health care services. About 99 percent of Medicare beneficiaries do not
have a Part A premium since they have at least 40 quarters of Medicare-covered
employment.
The Medicare Part A inpatient hospital deductible that beneficiaries pay when
admitted to the hospital will be $1,316 per benefit period in 2017, an increase
of $28 from $1,288 in 2016. The Part A deductible covers beneficiariesf share of
costs for the first 60 days of Medicare-covered inpatient hospital care in a
benefit period. Beneficiaries must pay a coinsurance amount of $329 per day for
the 61st through 90th day of hospitalization ($322 in
2016) in a benefit period and $658 per day for lifetime reserve days ($644 in in
2016). For beneficiaries in skilled nursing facilities, the daily coinsurance
for days 21 through 100 of extended care services in a benefit period will be
$164.50 in 2017 ($161 in 2016).
Enrollees age 65 and over who have fewer than 40 quarters of coverage and
certain persons with disabilities pay a monthly premium in order to receive
coverage under Medicare Part A. Individuals who had at least 30 quarters of
coverage or were married to someone with at least 30 quarters of coverage may
buy into Part A at a reduced monthly premium rate, which will be $227 in 2017, a
$1 increase from 2016. Uninsured aged and certain individuals with disabilities
who have exhausted other entitlement and who have less than 30 quarters of
coverage will pay the full premium, which will be $413 a month, a $2 increase
from 2016.
Part A Deductible and Coinsurance Amounts for Calendar
Years 2016 and 2017 by Type of Cost Sharing |
|
2016 |
2017 |
Inpatient hospital deductible |
$1,288 |
$1,316 |
Daily coinsurance for 61st-90th Day |
322 |
329 |
Daily coinsurance for lifetime reserve days |
644 |
658 |
Skilled Nursing Facility coinsurance |
161 |
164.50 |