Medicare 2018: Part A and Part B Changes

Posted on Posted in Medicare A & B

 

On November 17, 2017, the Centers for Medicare & Medicaid Services (CMS) released the 2018 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs. [Link to press release.]

Medicare Part B Premiums

The standard monthly premium for Medicare Part B enrollees will be $134 for 2018, the same amount as in 2017.

  • Due to “hold harmless(i)”, about 42% of all Part B enrollees have not been paying the full monthly premium. In 2018 these enrollees will see an increase from $109 to the full monthly premium of $134 because of the 2% increase in their Social Security benefit.
  • Still, about 28 percent of all Part B enrollees will pay less than the full monthly premium of $134, because the increase in their Social Security benefit will not be large enough to cover the full Part B premium increase.

Medicare Part A Deductible

Medicare Part A covers covers inpatient hospital, skilled nursing facility, and some home health care services. The annual inpatient hospital deductible that beneficiaries pay when admitted to the hospital will be $1,340 per benefit period in 2018, an increase of $24 from $1,316 in 2017. The Part A deductible covers beneficiaries’ share of costs for the first 60 days of Medicare-covered inpatient hospital care in a benefit period.

Medicare Part A Daily Coinsurance

2017 2018
Daily coinsurance for 61st-90th Day $329 $335
Daily coinsurance for lifetime reserve days $658 $670
Skilled Nursing Facility coinsurance after 20 days $164.50 $167.50

Medicare Part B Deductible

The annual deductible for all Medicare Part B beneficiaries will be $183 in 2018, the same annual deductible in 2017.

Did you know?

Many Medicare enrollees carry supplemental insurance to cover the Medicare Part A and Part B annual deductible and coinsurance amounts. In New York State, under certain conditions Medicare enrollees can shop and change their Medicare supplemental plan without regard to pre-existing conditionsClick here to read Dan’s earlier post to learn how and inquire below to request an individual consultation.


(i) The Medicare hold harmless provision is a legal statement prohibiting an increase to Medicare B premiums stating that an individual’s Part B premium cannot rise more than the previous year’s cost of living increase in Social Security benefits. Those individuals not receiving Social Security payments or who directly pay the Part B Premium are not protected.

Sources:

CMS: Center for Medicare and Medicaid Services

Motley Fool: 3 Changes to Medicare in 2018 That You Need to Know

CNBC: Medicare Part premiums jumping 23 percent for may retirees.

 

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