Medicare Part B Costs in 2017

How to Budget Your Health Expenses

Part B Costs 2016
Part B premiums increase for some seniors but not all. Rob Melnychuk/DigitalVision/Getty Images

Part B is what covers the bulk of your healthcare expenses. Understand how much you will pay out of pocket and budget for the year ahead.

Part B Deductible

The annual deductible for Part B is $183 in 2017, a 10.2 percent increase from $166 in 2016. You are required to pay the full deductible amount before Medicare will start paying towards your health expenses.

Part B Premiums

In 2017, Part B premiums rose for all people new to Medicare, those on Medicare but not Social Security, and those who are on both Medicare and Medicaid.

Th good news is the increases in 2017 were not as high percentage-wise as they were in 2016.

2017 Part B Premiums for Individuals
IncomeYour 2017 CostsChange from 2016
Less than $85,000$134.00 per month

$12.20 increase per month

$146.40 increase per year

$85,000 - $107,000$187.50 per month

$17.00 increase per month

$204.00 increase per year

$107,000 - $160,000$267.90 per month

$24.30 increase per month

$291.60 increase per year

$160,000 - $214,000$348.30 per month

$31.60 increase per month

$379.20 increase per year

More than $214,000$428.60 per month

$38.80 increase per month

$465.60 increase per year

 

2017 Part B Premiums for Married Couples
IncomeYour 2017 CostsChange from 2016
Less than $170,000$134.00 per month

$12.20 increase per month

$146.40 increase per year

$170,000 - $214,000$187.50 per month

$17.00 increase per month

$204.00 increase per year

$214,000 - $320,000$267.90 per month

$24.30 increase per month

$291.60 increase per year

$320,000 - $428,000$348.30 per month

$31.60 increase per month

$379.20 increase per year

More than $428,000$428.60 per month

$38.80 increase per month

$465.60 increase per year

 

2017 Part B Premiums for Married People Filing as Individuals
IncomeYour 2017 CostsChange from 2016
Less than $85,000$134.00 per month

$12.20 increase per month

$146.40 increase per year

$85,000 - $129,000$348.30 per month

$31.60 increase per month

$379.20 increase per year

Greater than $129,000$428.60 per month

$38.80 increase per month

$465.60 increase per year

 

People who were already on both Medicare and Social Security prior to 2017 will not necessarily see a rise in their Part B premium rates. The holds harmless provision protects Social Security recipients from paying higher premiums if they meet certain criteria.

  • You were entitled to Social Security benefits as of November 2016.
  • Your Medicare Part B premiums were directly deducted from your Social Security check from November 2016 to January 2017.
  • Any Social Security cost of living adjustment (COLA) increase is not enough to cover the cost of the premium increase.
  • You are in the lowest income category.

The Social Security COLA for 2017 is a non-impressive 0.3 percent and does not cover the cost of the premium increase. Beneficiaries who also meet the other criteria will pay the 2016 Part B premium rate of $121.80 per month.

For those who are dual eligible, Medicaid will pay their Medicare premiums. They will be charged the higher Part B premium rates.

Part B Premiums and Medicare Advantage

You can elect to have Original Medicare (Parts A and B) or a Medicare Advantage plan (Part C). Medicare Advantage plans are offered by private insurance companies and will cover everything that Original Medicare offers and more.

Even if you decide on a Medicare Advantage plan and pay premiums to the insurance company, you still have to pay Part B premiums to the government. You must take the added cost into consideration.

Part B Coinsurance

The Part B coinsurance remains unchanged. Medicare pays 80 percent and you pay 20 percent with the exception of preventive screening tests. As long as your doctor accepts assignment, your preventive screening tests will be free.

Sources:

Part B costs. Medicare.gov website. https://www.medicare.gov/your-medicare-costs/part-b-costs/part-b-costs.html.

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