Medicare Premiums, Deductibles, and Copays Change for 2018

Here are the new numbers for Medicare premiums, deductibles, and copays for 2018.

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 don't have a long enough work history, you'll pay between $232 (for 30-39 work credits) and $422 (for fewer than 30 work credits).

In 2018, you’ll also pay a $1,340 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: $335 coinsurance per day of each benefit period
• Hospital days 91 and beyond: $670 coinsurance per each lifetime reserve day for each benefit period
• Skilled nursing days 21-100: $167.50 coinsurance per day of each benefit period.

Part B Costs

The standard Medicare Part B premium is $134 in 2018. But some people will pay less, $130 on average, because of a hold harmless provision that doesn't allow Social Security payments to be reduced from year to year for Medicare premiums.

If you first enroll in Medicare Part B during 2018, or you are not collecting Social Security benefits, your premium will be $134 per month. 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 2018 is unchanged at $183 per year.

There are also caps on the following Part B services for 2018:

• outpatient physical therapy and speech-language pathology combined: $2,010
• occupational therapy: $2,010.

Part D Costs

Part D premiums vary depending on the plan you choose, with an average $33.50. The maximum Part D deductible for 2018 is $405 per year (though some plans waive the deductible).

Also, if your adjusted gross income is over $85,000 (or $170,000 for a couple), you will pay a monthly adjustment amount to Medicare in addition to your monthly premium, as follows:

In 2018, the “donut hole” (coverage gap) begins at $3,750 and ends at $5,000. However, in 2018, while you are in the donut hole, you will only pay 44% of the cost of generic drugs and 35% of the cost of brand-name drugs (plus a small processing fee to the pharmacy).

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 2018.

Effective date: Jan 01, 2018