2017 Medicare Premiums & Costs

Medicare has announced the premiums and costs for the 2017 plan year. We have outlined the key costs you need to know below.

Part A Premium: While free for most people, those that must buy into Part A will pay up to $413/month based on their Social Security earnings history.

• Deductible: $1,316 per benefit period
• Hospital Copays:
  • Days 1-60: $0 copay
  • Days 61-90: $329/day
  • Days 90+: $658/day (limited to 60 reserve lifetime days, unless you have supplemental coverage that provides additional hospital days)
• Skilled Nursing Facility Copays:
  • Days 1-20: $0 copay
  • Days 21-100: $164.50/day
  • Days 101+: Full Cost

Part B Premium: $134/month
Note that the vast majority of beneficiaries will continue to be "held harmless" as a result of the paltry 0.3% Cost of Living Adjustment (COLA) for 2017. Their premium will be about $109/month on average. Actual amounts are dependent on their Social Security benefits.

• Annual Deductible: $183
• Coinsurance: 20% for Medicare approved services. This may be as high as 35% if your doctor(s) does not accept Medicare Assignment.

Part D Costs:
Your monthly Part D premium depends on the plan you choose that best meets your needs.

• Standard Deductible: $400 (some plans do not charge the deductible)
• Initial Coverage Limit: $3,700
• Donut Hole/Gap Coverage:
  • You will pay 51% of the cost for Generic medications.
  • You will pay 40% of the cost for Brand medications.
• Catastrophic Coverage: Effective once you have spent $4,950.
  • Greater of 5% or $3.30 for generic and preferred medications.
  • Greater of 5% or $8.25 for all other medications.

​Income Related Monthly Adjustment Amount (IRMAA):
Higher income earners will be subject to increased Medicare Part B & D premiums as outlined in the table below. Note that these income thresholds include any tax-exempt interest income as well.