Medicare Announces 2017 Premiums and Deductibles

The Centers for Medicare and Medicaid Services announced Thursday, new premiums and out of pocket costs for 2017. This information comes after some beneficiaries have already made plan choices for 2017 based upon 2016 figures for out of pocket costs and premiums. Medicare is notorious for announcing changes late in the game, well after the year’s OEP/AEP (Open Enrollment Period/ Annual Election Period) have already begun.

The annual Medicare Part B deductible for all Medicare beneficiaries for 2017 will increase to $183, up from $166 in 2016. This is the deductible that anyone with a Standard Medicare Supplement Plan G is responsible for before their supplement plan’s benefits are triggered. For those who have Medicare Supplement Plan F, the plan will continue to cover the Part B deductible in full for the member.

The Part B premium rates will increase for about 30 percent of beneficiaries. The new monthly Medicare Part B premium for 2017 will be $134, up from $121.80 in 2016; an increase of 10 percent. Most beneficiaries will be protected from the hold harmless provision which locks in their Part B rate. Those protected are beneficiaries are those already receiving Social Security, and dual eligible participants having their premiums paid by Medicaid. Seniors that are newly eligible for Medicare in 2017 and those that are not receiving Social Security and being billed directly for Medicare will have to pay the higher premium.

In addition to increased Part B premiums and Part B annual deductible, Medicare has also increased other out of pocket costs such as the Part A deductible and per day costs for skilled nursing and Part A coinsurance. People with Medicare Supplement plans typically have benefits to cover these costs. The agents at Texas Medical Plans can review your Medicare Supplement policy benefits to see if you are effected by some or all of these changes. A Licensed agent can help you make an informed decision about you supplement policy and review it regularly to help you stay ahead of Medicare changes for years to come.