Forecasted Medicare rates in the next year
Medicare premium increases for most will be modest in 2017 as low Social Security “Cost of Living Adjustments” (COLA) keeps payments down. As Medicare premiums rise slightly in 2017 for Medicare Part B. Part B covering outpatient hospital services, physician services, and medical equipment for most will rise to about $109 for most of the retires as announced by the Centers for Medicare and Medicaid Services.
This is a little more than the usual premiums of $104 we’ve seen in place for the last 4 years. Because the premiums are tied to the cost of living adjustments for Social Security for the benefits in 2017. A 0.3% increase in benefits in October has been announced by the Social Security Administration.
About 70 percent of recipients are protected by a “hold harmless” rule from the large Medicare premium hikes for the years the Social Security COLA “Cost of Living Adjustments” are low. On average these individuals paid $109 in monthly payments for their Part B coverage in January.
Higher premiums for some
The remainder of older Americans, 30% will not be covered by the “hold harmless” rule and will be facing the higher costs. For 2017, a standard $134.00 monthly premium will be paid which is up from 2016’s premium of $121.80.
Higher Part B Medicare cost can be expected if your situation is listed below:
Those reporting a higher income on their federal tax returns are expected to pay higher premiums for coverage. This is because Part B is means-tested. You may need to contact Social Security for reassessment if your income declines in retirement for any number of different reasons.
Below is a breakdown for what premiums will look like in 2017 if you’re a high-income beneficiary: