MEDICARE PARTS A, Part B, Practice Management, Medicare inpatient hospital (Part A)
2017 MEDICARE PARTS A & B PREMIUMS AND DEDUCTIBLES ANNOUNCED
December 15, 2016
The Centers for Medicare & Medicaid Services (CMS) announced the 2017 premiums
for the Medicare inpatient hospital (Part A) and physician and outpatient hospital
services (Part B) programs.
Medicare Part B covers physician services, outpatient hospital services,
certain home health services, durable medical equipment, and other items.
On October 18, 2016, the Social Security Administration announced that the
cost-of-living adjustment (COLA) for Social Security benefits will be 0.3
percent for 2017.
Because of the low Social Security COLA, a statutory "hold harmless" provision
designed to protect seniors, will largely prevent Part B premiums from increasing
for about 70 percent of beneficiaries. This is the first premium increase in
For the remaining roughly 30 percent of beneficiaries, the standard monthly
premium for Medicare Part B will be $134.00 for 2017, a 10 percent increase
from the 2016 premium of $121.80. Because of the "hold harmless" provision covering
the other 70 percent of beneficiaries, premiums for the remaining 30 percent
must cover most of the increase in Medicare costs for 2017 for all beneficiaries.
This year, as in the past, the Secretary has exercised her statutory authority
to mitigate projected premium increases for these beneficiaries, while continuing
to maintain a prudent level of reserves to protect against unexpected costs.
The Department of Health and Human Services (HHS) will work with Congress as
it explores budget-neutral solutions to challenges created by the "hold harmless"
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.
Since 2007, beneficiaries with higher incomes have paid higher Medicare Part
B monthly premiums. These income-related monthly premium rates affect roughly
five percent of people with Medicare. The total Medicare Part B premiums for
high income beneficiaries for 2017 are shown in the following table:
Enrollees age 65 and over who have fewer than 40 quarters of coverage and
certain persons with disabilities pay a monthly premium in order to receive
coverage under Medicare Part A. Individuals who had at least 30 quarters of
coverage or were married to someone with at least 30 quarters of coverage
may buy into Part A at a reduced monthly premium rate, which will be $227
in 2017, a $1 increase from 2016. Uninsured aged and certain individuals with
disabilities who have exhausted other entitlement and who have less than 30
quarters of Volume 20, No. 6 Medical Association of Billers Page 3 coverage
will pay the full premium, which will be $413 a month, a $2 increase from
For more information on the 2017 Medicare Parts A and B premiums and deductibles visit: https://www.federalregister.gov/public-inspection.
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