As expected Medicare costs in 2017 have increased.
The breakdown of costs, according to Medicare.gov is as follows:
For Part A:
- Medicare Part A premium for those who do not qualify for coverage, but would like to enroll for coverage: $413.00 a month which is a 0.49 percent increase from 2016.
- Medicare Part A deductible: $1,316 which is 2.17 percent increase from 2016 (this can be covered though certain MediGap or Supplemental Policies).
- Hospital Stays have also increased 2.17 percent as days 61-90 are now $329.00 while the 60 days past, under the lifetime reserve have increased to $658.00 (these costs can be covered by certain MediGap/Supplemental policies).
For Part B:
- Medicare Part B premium has increased by 10.02 percent to $134.00 a month for those who are defined as being within the national average in terms of income.
- Medicare Part B Deductible: $183.00 which is a 10.24 percent increase from 2016 (this cost can be covered by certain MediGap/Supplemental policies).
- The National Base Premium, which is used to determine any late enrollment fees one may have as well as any surcharges that may apply for those who happen to earn too much income has increased by 4.49 percent from 2016 to $35.63.
- Part D Deductible: $400 which is an increase of 11.11 percent from 2016.
Medicare’s Income Related Monthly Adjustment Amount (IRMAA):
- Part B surcharges have increased by an average of 9.96 percent per each bracket from 2016.
- Part D surcharges have increased by an average of 4.52 percent per each bracket from 2016.
In 2017 Medicare premiums, have, across the board increased while, at the same time Social Security benefits have not kept up with these rates as the cost of living adjustment (COLA) is only expected to be 0.3 percent, or roughly $5.00 extra a month for the average Social Security beneficiary, according to Social Security.gov.
For many in retirement not only will see their health coverage costs increase, but after factoring in these costs to their overall expenses they will most likely see a decrease in income from the previous year.