What Will You Pay for Medicare in 2018? (Corrected)
Our previously published alert listed 2018 Medicare Part B premium income thresholds as they were originally reported on the official Medicare website. These thresholds were subsequently corrected on Medicare.gov. The correct income thresholds are reflected below.
The Centers for Medicare & Medicaid Services (CMS) has announced that the standard monthly Part B premium in 2018 will remain $134 (or higher, depending on your income). In 2017, most Medicare beneficiaries who received Social Security benefits paid a lower monthly premium ($109, on average). However, this is likely to change in 2018.
Due to a provision in the Social Security Act called the "hold harmless" rule, Medicare premiums for existing beneficiaries can't increase faster than their Social Security benefits. Over the past few years, Social Security benefits didn't increase much because of low or no cost-of-living increases. However, there will be a 2% cost-of-living increase for Social Security benefits in 2018. This increase will cause more people to pay higher monthly Medicare Part B premiums closer to the standard ($134) amount. The Social Security Administration (SSA) will tell you the exact amount of your Part B premium in 2018.
Approximately 30% of Medicare beneficiaries are not protected by the hold harmless rule, and may pay the standard premium or more for Medicare Part B. You fall into this group if:
The tables below show the Part B premium that applies if you're in this group.
*Beneficiaries with higher incomes have paid higher Medicare Part B premiums since 2007. To determine if you're subject to income-related premiums, the SSA uses the most recent federal tax return provided by the IRS. Generally, the tax return you filed in 2017 (based on 2016 income) will be used to determine if you will pay an income-related premium in 2018. You can contact the SSA at (800) 772-1213 if you have new information to report that might change the determination and lower your premium (for example, you lost your job and your income has gone down, or you've filed an amended income tax return).
Other Medicare costs
Other Medicare Part A and Part B costs in 2018 include the following:
To view the Medicare fact sheet announcing these and other figures, visit medicare.gov.
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