2018 Medicare Part A and B Premiums and Deductibles
By Marilyn Mines, Senior Manager, Advisory Services
On November 17, 2017, the Centers for Medicare & Medicaid Services (“CMS”) published the rates for Medicare Parts A and B premiums and deductibles. As a reminder, providers should update their billing systems to be ready for the January 1, 2018, changes. Below is a summary of the major changes for calendar year 2018.
Medicare Part B, which covers physician, outpatient hospital and certain home health services, as well as durable medical equipment, will increase slightly for some beneficiaries secondary to the 2% increase in Social Security.
- Part B monthly premiums range from $134 to $428.60, dependent upon income as filed in the patient’s annual federal tax return and whether filed individually or jointly.
- The Part B deductible is $183.00.
Medicare Part A, which covers in-patient hospital, skilled nursing facility and some home health services, is usually not purchased nor does it have a monthly premium for most beneficiaries. Persons who have contributed for 40 quarters through their employer paychecks are not subject to a premium. For those who do not meet this test, Medicare Part A insurance may be purchased with the monthly premium based on the number of quarters the beneficiary contributed.
Monthly cost to purchase Medicare Part A (refer to the CMS website above for additional information):
- $232 per month if contributed to the program for at least 30 quarters.
- $422 per month if contribution were less than 30 quarters.
In-Patient Hospital Coverage:
- The Part A deductible per benefit period is $1,340, which covers the cost of the first 60 days of the covered in-patient hospital stay.
- Part A coinsurance is $335/day for days 61-90 of the in-patient hospital stay.
- Part A lifetime reserve days cost is $670/day.
Skilled Nursing Facility:
- Coinsurance is $167.50 for days 21-100.
For more information, please contact a Marcum healthcare professional.
For more specific information, visit the CMS website.