Q: Will the Medicare Part B Premium Cost Increase in 2018?
Asked by Bonnie P. on November 3, 2017
The monthly Medicare Part B premium cost of $134 per month is NOT expected to increase in 2018. 🎉 That’s great news if you’re paying the standard premium.
As always, if your income decreases, your premium may even be reduced. Things get a little more complicated if you fall under one of the following special situations:
Is Your Part B Premium Automatically Deducted from Your Social Security? By law, Medicare cannot cause you to receive less in Social Security benefits than you did last year. However, Social Security benefits are expected to increase slightly in 2018, and so your increased Social Security payments will likely go towards your Part B premium.
Are You Receiving Aid to Pay for Part B? You’ll have to check with your aid provider if your Medicare Part B premium is paid for with government or non-profit help, but the new year shouldn’t cause a significant change in your benefits.
Is Your Medicare Part B Premium More Than $134 Per Month? High earners already pay more than the standard Medicare Part B premium cost of $134 per month. High-income surcharges are based on your tax return from two years ago. Taxpayers who reported income of over $133,000 (or $267,000 if filing jointly) in 2016 may see premium increases in 2018, due to a difference in the way that the surcharge will be calculated from 2018 onward. If your 2016 tax return no longer reflects your current living situation, you can contact Social Security to apply for a lower premium.
Are You Enrolled in Medicare Advantage (Part C)? Although each Medicare Advantage plan is different, the government believes that monthly Medicare Advantage premiums will actually decrease by $1.91 per month in 2018!
Taking the Next Steps
Even if it does increase in the future, your Medicare Part B premium is tax-deductible.
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