The chart below provides a summary of 2018 Medicare premiums, deductibles and co-insurance, along with average increase to monthly Social Security benefits in 2018:
|Medicare Part A Premium||Most people do not have to pay a monthly premium for Part A. If you buy Part A, you will pay up to $422 each month ($422/month if you paid Medicare taxes for less than 30 quarters or $232/month if you paid Medicare taxes for 30-39 quarters)|
|Medicare Part A Inpatient Hospital Deductible and Co-Insurance||$1,340 deductible and no coinsurance for days 1-60 of each benefit period|
|Days 1 - 60 co-insurance for each benefit period: $0|
|Days 61 - 90 co-insurance per day for each benefit period: $335|
|Days 91 and beyond: $670 co-insurance per each "lifetime reserve day" (up to 60 days over your lifetime)|
|Skilled Nursing Facility||$0 for Days 1 - 20 of each benefit period; then $167.50 per day for Days 21-100 (after Day 100 Medicare beneficiary pays all costs)|
|Medicare Part B Premium*||Standard Part B premium will be $134 (or higher based on your income). However, some people who receive Social Security benefits will pay less ($130/average)|
|Medicare Part B Deductible||$183.00|
|Medicare Part D Benefits||Initial deductible: $405|
|Initial coverage limit: $3,750|
|Out of pocket threshold (or TrOOP): $5,000|
|Coverage gap: begins once you reach your Medicare Part D plan's initial coverage limit ($3,750 in 2018) and ends when you spend a total of $5,000 in 2018.|
|In 2018, Part D enrollees will receive a 65% discount on the total cost of their brand-name drugs purchased while in the donut hole. The 50% discount paid by the brand-name drug manufacturer will apply to getting out of the donut hole, however the additional 15% paid by your Medicare Part D plan will not count toward your TrOOP.|
|Minimum cost sharing in Catastrophic portion: 5% or $3.35 for generic or preferred drug that is multi-source drug and the greater of 5% or $8.35 for all other drugs.|
|Average Monthly Social Security Increase||All Retired Workers - 2.0% increase to $1,404 (from $1,377 in 2017)|
All Disabled Workers - 2.0% increase to $1,197 (from $1,173 in 2017)
* From CMS: "The standard monthly premium for Medicare Part B enrollees will be $134 for 2018, the same amount as in 2017. However, a statutory 'hold harmless' provision applies each year to about 70% of enrollees. For these enrollees, any increase in Part B premiums must be lower than the increase in their Social Security benefits. After several years of no or very small increases, Social Security benefits will increase by 2% percent in 2018 due to the cost-of-living adjustment (COLA). Therefore, some beneficiaries who were held harmless against Part B premiums increases in prior years will have a premium increase in 2018."
According to CMS, Part B enrollees who are not subject to the hold-harmless provision will pay the full premium of $134 per month in 2018 while Part B enrollees who were held harmless in 2016 and 2017 will see an increase in the monthly Part B premium from the roughly $109, on average, they paid in 2017.
CMS estimates that 42% of all Part B enrollees are subject to the hold-harmless provision in 2018 and will pay the standard monthly premium of $134 (an increase of about $25), because the increase in their Social Security benefit will be greater than or equal to an increase in their Part B premiums up to the full 2018 amount. Additionally, CMS estimates 28% of all Part B enrollees are subject to the hold-harmless provision in 2018 and 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 B enrollees will pay the standard $134 Part B premium amount in 2018 (or higher depending on income) if:
Click on the following link for additional information on Medicare Part B costs:
Or for further information on 2018 Social Security benefits click this link:
Until next time,
Andrew Herman, President
AH Insurance Services, Inc.