Medicare 2017 costs at a glance: In 2017, persons who are already enrolled in Medicare pay $134 per month as Part B premium. The Part B deductible for 2017 is $183.
Actually, these numbers are valid for most persons on Medicare. You will have to pay a higher premium if you filed an individual tax return last year and reported income over $85,000 or $170,000 for a joint return. Depending on the amount of your taxable income, you may have to pay between $187.50 up to the maximum Part B premium of $428.60 per person. Fortunately, income-related adjustments affect less than 5 percent of Medicare beneficiaries. If you have to pay a higher Part B premium because of your income, you should be notified by Social Security.
This means, Medicare Part B premiums have increased from $121.80 in 2016 to $134 in 2017. However, because the Part B premium increased more than the cost-of-living increase for 2017 Social Security benefits, most people who get Social Security benefits will pay less than this amount (on average $109). The exact amount you have to pay will be mailed to you by Social Security.
The formula for the calculation of the standard premium was developed in 1965, when Medicare first went into effect. At this time, the monthly premium for Part B was only $3.00. The current rate is determined each year, depending on the level of costs for Medicare expenses in the previous year.
The official formula for determining Part B premiums was established by Congress decades ago. The standard premium amount for each year is calculated on the level of Medicare health care costs of the previous year. From 2010 to 2020, health care costs are expected to go up by about 5 percent each year, because of increasing use and rising costs of health care services.
For the detailed Part B premiums by income, visit https://www.medicare.gov/your-medicare-costs/part-b-costs/part-b-costs.html.By: Joseph Rosario