Ensuring you have affordable health care coverage each year should be an integral part of your annual budget and planning process. If you plan to enroll in Medicare in 2017, this article will outline what you can expect to pay for Medicare premiums for 2017, and what plan enrollment options may be available to you. A thorough understanding of estimated monthly Medicare premiums, deductibles, and coinsurance covered California open enrollment, will allow you to budget your health care expenses throughout the year.
Medicare Premiums 2017
What follows is an explanation of the Medicare premiums, for Parts A, B, C, and D, and information about additional deductible and coinsurance costs for parts A and B.
Medicare Part A
Medicare Part A covers inpatient care received at a hospital, skilled nursing facility, and in some circumstances at home. Most Americans are eligible for Medicare Part A once they reach age 65 if they are collecting Social Security retirement benefits. Other individuals who quality for Medicare Part A include individuals with a disability, End Stage Renal Disease (ESRD), or the nervous system disease ALS.
Medicare Part A Premium
For most Americans who are eligible for Medicare Part A, there are $0 premium costs. For those who are not otherwise eligible, but choose to purchase Medicare Part A, Part A Medicare premiums for 2017 may cost up to $413 per month, or up to $4,956 annually. Note that the standard Medicare Part A premium for individuals who have paid Medicare taxes for 30 to 39 quarters is $227, however for individuals who have paid Medicare taxes for less than 30 quarters, the standard Part A premium is $413 per month.
Medicare Part A Deductible and Coinsurance
After your premium costs are paid—if applicable—you may still have to pay out-of-pocket when obtaining care for covered California open enrollment services covered under Part A, including:
- A $1,316 deductible for each benefit period.
- Days 1-60 of inpatient care: $0 coinsurance for each benefit period.
- Days 61-90 of inpatient care: $329 coinsurance per day of each benefit period.
- Days 91 and beyond of inpatient care: $658 coinsurance per each. “lifetime reserve day” after day 90 for each benefit period (up to 60 days over your lifetime).
- If care is required beyond lifetime reserve days, you will be responsible for all associated costs.
Medicare Part B Premiums
Medicare Part B covers services and supplies that are medically necessary to treat a health condition. Examples of services covered under Medicare Part B include outpatient care, preventive care, an ambulance, and durable medical equipment. The standard Medicare Part B monthly premium for 2017 is $134. Note, this premium cost may be higher depending on your income. Most Americans receiving Social Security benefits, however, will pay less, an average of $109.
Medicare Part B Deductible and Coinsurance
In 2017, the annual Medicare Part B deductible is $183. Once you have met your deductible, you will typically pay 20 percent of the Medicare-approved amount for covered California open enrollment services.
Medicare Part C Premiums
Medicare Part C, otherwise known as a Medicare Advantage Plan, is an optional Medicare policy purchased through a private health insurance covered California open enrollment company. Part A and Part B benefits within a Part C plan must be the same as those offered under the Original, or federally-funded Medicare program. In 2017, as in all years, the premium you pay for Part C will depend upon the plan you choose to purchase.
Medicare Part D Premiums
Medicare Part D is an optional plan that you may elect to purchase to help subsidize the cost of your prescription drug medications. As with Part C, since Part D is optional, and there are a variety of Part D plans and coverage levels available, the premiums you pay in 2017 will depend upon the plan you choose.
Total Medicare Cost 2017: What You Should Expect to Pay for Parts A and B
When budgeting for your annual costs, first determine if you are eligible for premium-free Medicare Part A, or if you’ll be paying Part A premiums to receive coverage. Remember, you’ll need to pay monthly for your premiums, so depending on the month you enroll, plan accordingly for the year. If you know you will need inpatient care in 2017, such as skilled nursing care, set aside money in your budget to pay your deductible and coinsurance, depending on the length of care you anticipate needing, as best as you can estimate.
For Part B, to be conservative, plan for $134 in premiums each month, or up to $1,608 for the year. Then, set aside money in your budget to pay up to the annual deductible amount of $183. Finally, remember that after your deductible is met, you’ll be responsible for 20 percent of the Medicare-approved rate for all covered services.