There’s a silver lining to 2017 Medicare rates. They did go up, but not as much as anticipated. Overall, premium increases were modest.
Like regular health insurance plans, Medicare requires monthly premiums and annual deductibles. It gets a little more complicated, though because Medicare is separated into four separate plans to cover different products and services.
Medicare Part A
Part A covers inpatient hospital care, nursing homes and some in-home care service.
Monthly Premiums – Beneficiaries who have paid Medicare taxes on earned income for ten or more years aren’t required to pay a monthly premium.
Annual Deductibles – Inpatient hospital care and services are $1,316 in 2017, up from $1,288 in 2016.
Medicare Part B
Outpatient services, doctors, durable medical equipment and some home health services are covered by Part B.
Monthly Premiums – About 70% of enrollees pay an average of $109 a month, which is deducted from their Social Security benefits. The standard Part B premium is $134. Premiums are based on income, with higher income individuals paying more.
Annual Deductibles – The deductible, which was $166 in 2016, is set at $183 per year for 2017.
Medicare Part C (Medicare Advantage)
Medicare Advantage provides comprehensive coverage through private insurance providers.
Monthly Premiums – Premiums vary by insurance plan.
Medicare Part D
Outpatient prescription drugs are covered with Part D, which is offered by insurance companies that contract with Medicare.
Monthly Premiums – Although benefits and costs vary by plans, the national average monthly premium for 2017 is $61.08.
Annual Deductibles – Deductibles vary by plan, but no plan is allowed to have a deductible more than $400 in 2017. Some providers don’t have a deductible.
Many take out a Medigap supplemental insurance plan. These policies, which help cover deductibles, co-pays and other gaps, are offered by private providers. They are standardized in most states. Insurance companies choose which Medigap policies it wants to sell, with some state laws influencing their choices.
To learn more about Medicare, be sure to read our Medicare Health Insurance online information and use our quote tool to compare rates in your area.