Dive Brief:
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The CMS recently announced the 2018 premiums, deductibles and coinsurance amounts for Medicare Parts A and B.
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The Medicare Part B standard monthly premium will remain $134 next year, and the annual deductible will stay at $183. However, some enrollees will see a premium increase in 2018.
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Part A’s inpatient hospital deductible will increase from $1,316 this year to $1,340 in 2018, an increase of $24. That covers the beneficiary share of costs or the first 60 days of inpatient hospital care. About 99% of Medicare beneficiaries don’t have a Part A premium.
Dive Insight:
As the country ages, the Medicare population grows. Medicare gains an estimated 10,000 new people who become eligible each day.
Getting a steady stream of new customers daily is just one reason why payers are so interested in MA. About one-third of all Medicare beneficiaries are in a Medicare Advantage plan.
Both Medicare and Medicare Advantage plans have benefited from steady premiums in recent years. In fact, MA’s premiums will decrease by 6% next year. Those in Part B will also like that their premiums will likely not increase in 2018.
Medicare Part B premiums will stay at $134 monthly. However, some beneficiaries will see a premium increase because of the "hold harmless" provision. Social Security benefits will increase 2% next year due to the cost of living adjustment, which will affect those impacted by the provision.
This year, those impacted by the provision are only paying $109 but may see their premium increase to $134 next year or somewhere between this year's amount and $134. The CMS estimates about 42% of Part B enrollees subject to the provision will pay the full premium. About 28% of Part B enrollees subject to the provision will pay less than the $134 monthly premium, according to the CMS.
Regarding Part A, deductibles will increase by $24, and so will coinsurance. After 60 days in the hospital, Medicare Part A kicks in the coinsurance period. Beneficiaries will pay $335 per day for coinsurance from the 61st to 90th in-patient day, which is a $6 increase over the current year. Then, that goes to $670 (a $12 increase from this year) for lifetime reserve days.
Also, the coinsurance for beneficiaries in skilled nursing facilities for days 21 through 100 of extended care services will increase $3 to $167.50 in 2018, CMS stated.