Looking at 2017 Medicare premiums and deductibles Covering The Bases

What will I pay for Medicare Part B monthly premiums in 2017?

There is not a simple answer for this question. The Centers for Medicare and Medicaid Services announced that the 2017 Part B premium will be $134/month. However, most people will not pay this amount. Let me explain.

The Social Security Administration announced a 0.3 percent Cost of Living Adjustment, or COLA, for 2017 monthly Social Security checks. Medicare rules protect most people from having to pay more for an increased monthly Medicare premium than the amount they will receive in a Social Security COLA. This protection is called the "hold harmless provision." More than 70 percent of people on Medicare will be protected by the hold harmless provision and will pay $109/month for their Medicare Part B monthly premiums.

There are three criteria that must be met in order to qualify for the hold harmless provision.

*The person must be entitled to Social Security benefits for November and December of the preceding year (2016).

*The Medicare Part B premium has been deducted from the person's Social Security check in December of the preceding year (2016) and January of the new year (2017).

*The modified adjusted gross income is below $85,000 for an individual and $170,000 for a couple. If you have questions about this provision, you may contact Social Security at 1-800-772-1213.

If you do not meet the above hold harmless criteria, you will pay $134/month for your Medicare Part B premium.

If you are considered a higher earner, you will pay more than $134/month for Medicare Part B. Higher earners pay $134/month plus a pro-rated Income Related Monthly Adjustment Amount. SSA defines higher earners as individuals with modified adjusted gross income above $85,000 a year or couples (who file taxes jointly) with modified adjusted gross incomes above $170,000 a year.

If you are a higher earner and have questions about your monthly Medicare Part B premium, contact Social Security at 1-800-772-1213 or visit www.socialsecurity.gov for more information.

What are the Medicare Part A and Medicare Part B deductibles for 2017?

The Part B (medical) deductible will be $183 per calendar year; this is $17 increase from 2016. The Medicare Part A (hospital) deductible for 2017 will be $1,316 per benefit period; this is $28 increase from 2016 Medicare Part A deductible. Please note that Part B is a calendar year deductible, and Part A is has a benefit period deductible. Below is an explanation of a benefit period.

The Medicare Part A deductible is not set on a calendar year basis but for a benefit period. The "Medicare and You" handbook states a benefit period begins on the day you are admitted into a hospital and ends when you haven't received any inpatient hospital care or inpatient skilled nursing care for 60 days in a row. If you are admitted back into the hospital after one benefit period has ended, you are now in a new benefit period and you are responsible for a new Part A deductible.

Amy Rubino is the director of the

Senior Health Insurance Assistance Program and the Senior Medicare Patrol

for the Anne Arundel County Department

of Aging and Disabilities. You may

contact either program at 410-222-4257

or [email protected].

Credit: Amy Rubino