Medicare May Cost a Lot More in 2017

The Centers for Medicaid and Medicare Services (CMS) are due to release the Medicare premium amounts on October 1st, 2016. The website MedigapPlanners.com warns there may be a substantial increase coming. According to their recent post, some projections are indicating an increase as high as 22% for the Medicare Part B premium. An increase of that percent would raise rates from $121.80 to $149 a month starting January 1st, 2017.

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The current law, known as the "Hold Harmless" provision, protects seniors from receiving an increase in their Part B premium that is higher than their Social Security Cost of Living Adjustment (COLA).

The estimated COLA for 2017 is 0.2%.

Approximately 70% of those on Medicare will be protected from a large Part B increase under the law, but "Hold Harmless" doesn't apply to everyone. Leaving the remaining 30% to carry the burden.

In 2015, Congress intervened and stopped the planned 52% premium hike for 2016.

With healthcare costs on the rise and a rapidly increasing senior population, this can't go on forever. Still, many in the industry are expecting Congress to act again.

Legislation has been passed to control costs.

Since 2007, high-income individuals have been paying significantly more for their Part B premiums.

Those in the highest bracket could see an increase from $387 to $467 a month in 2017.

When the Medicare Access and CHIP Reauthorization Act of 2015 goes into effect in 2018, income thresholds to be considered high-income will be lowered, and many individuals will pay a higher Medicare Part B Deductible. The same law requires the phasing out of Medicare Supplement Plans C and F in 2020.

It would seem Medicare hasn't gotten the attention it deserves this election cycle. As the new changes to the program are incorporated, we are likely to hear a lot more from our representatives in the coming years.