Medicare Premiums, Deductibles, and Copays Change for 2017

Here are the new numbers for Medicare premiums, deductibles, and copays for 2017.

Part A Costs

Most people don't pay a monthly premium for Medicare Part A (hospital insurance). But if you have to pay for Part A because you or your spouse doesn't have a long enough work history, you'll pay between $227 (for 30-39 work credits) and $413 (for fewer than 30 work credits).

In 2017, you'll also pay a $1,316 deductible for each benefit period in which you use hospital or skilled nursing inpatient care, in addition to the following copays.

• Hospital days 61-90: $329 coinsurance per day of each benefit period
• Hospital days 91 and beyond: $658 coinsurance per each lifetime reserve day for each benefit period
• Skilled nursing days 21-100: $164.50 coinsurance per day of each benefit period.

Part B Costs

Most people pay a Part B premium of $109 each month (up from $104.90 in 2016). But if you first enroll in Medicare Part B during 2017, or you are not collecting Social Security benefits, your premium will be $134 per month (up from $121.80 in 2016). Also, if your adjusted gross income is over $85,000 (or $170,000 for a couple), the monthly premium is higher, as follows:

The Part B deductible for 2017 is $183 per year.

There are also caps on the following Part B services for 2017:

• Cap on outpatient physical therapy and speech-language pathology combined: $1,980
• Cap on occupational therapy: $1,980.

Part D Costs

Part D premiums vary depending on the plan you choose. The Part D deductible for 2017 is $400 per year (though some plans waive the deductible).

In 2017, the "donut hole" (coverage gap) begins at $3,700 and ends at $4,950. However, in 2017, while you are in the donut hole, brand-name drugs must be sold to you at a 60% discount and generic drugs at a 49% discount.

There are subsidies available to pay for Part D for those with low income (called Extra Help). See Nolo's article on Extra Help for Part D for eligibility numbers for 2017.