The Centers for Medicare and Medicaid Services announced that monthly premiums for Medicare will be increasing next year. Seventy percent of Medicare beneficiaries are protected by the “hold harmless” provision, which says benefit checks cannot decrease due to Medicare increases. The provision was triggered by the small 0.3% cost of living increase to Social Security for 2017. If you are covered by the hold harmless provision and you are currently paying $104.90/month, your premium will increase to $109/month.
Unfortunately, 30% of beneficiaries are not covered by the hold harmless provision, and they must bear the costs for all beneficiaries. Their premiums will increase by 10% in 2017, which, while large, is less than the projected 22% increase. Those not protected include:
The table below shows the premiums for those subject to the increase and IRMAA:
Individual | Married filing jointly | Married filing separately | 2016 monthly premiums | 2017 monthly premiums |
$85,000 or less | $170,000 or less | $85,000 or less | $121.80 | $134.00 |
Above $85,000 up to $107,000 | Above $170,000 up to $214,000 | N/A | $170.50 | $187.50 |
Above $107,000 up to $160,000 | Above $214,000 up to $320,000 | N/A | $243.60 | $267.90 |
Above $160,000 up to $214,000 | Above $320,000 up to $428,000 | Above $85,000 up to $129,000 | $316.70 | $348.30 |
Above $214,000 | Above $428,000 | Above $129,000 | $389.80 | $428.60 |
Discover the people who make Dowling & Yahnke one of San Diego’s top wealth management firm.
MEET THE TEAM