Medicare Part B Increases Announced for 2017

The premiums for Medicare Part B have been announced, by The Centers for Medicare & Medicaid Services (CMS), for the upcoming year of 2017.  Although the Social Security COLA that was announced in October was low, preimum rates are set to increase across the board.  Under the harmless hold provision, which applies to approximately 70% of beneficiaries, the average premium had been $104.90 for the past few years.  Come 2017. this premium will increase by about 4% to $109.

For the remaining 30% of beneficiaries, their monthly premium of $121.80 will rise to $134 in 2017 ( a 10% increase).  This huge increase is due to these 30% being held responsible for covering “most of the increase in Medicare costs for 2017 for all beneficiaries.”  Who is included in this 30% bracket?  The following excerpt from the Fed Smith article, “2017 Medicare Part B Premiums Announced,” should elaborate on that.

Medicare Part B beneficiaries not subject to the “hold harmless” provision include beneficiaries who do not receive Social Security benefits, those who enroll in Part B for the first time in 2017, those who are directly billed for their Part B premium, those who are dually eligible for Medicaid and have their premium paid by state Medicaid agencies, and those who pay an income-related premium. These groups represent approximately 30 percent of total Part B beneficiaries.

For more details about this premium hike, click here!