Your Medicare Costs in 2018
Under the law, people with Part B pay 25 percent of the costs of running the program, with the government picking up 75 percent.
A statutory ““hold harmless”” provision applies each year to about 70 percent of Part B enrollees. For these enrollees, any increase in Part B premiums must be lower than any cost-of-living increase in their Social Security benefits.
After several years of no or very small increases, Social Security benefits will increase by 2 percent in 2018 due to a cost-of-living adjustment. Therefore, some beneficiaries who were held harmless against Part B premium increases in prior years will see a higher premium in 2018.
Part B enrollees held harmless in 2016 and 2017 will see an increase in their Part B premiums from the roughly $109, on average, they paid in 2017. An estimated 42 percent of Part B enrollees are subject to the hold harmless provision in 2018 but will pay the full premium of $134, because the increase in their Social Security benefit will be greater than or equal to an increase in their Part B premiums up to the full 2018 amount.
About 28 percent of Part B enrollees are subject to the hold harmless provision in 2018 but will pay less than the full $134 premium. That’s because the increase in their Social Security benefit isn’t big enough to cover the full Part B premium increase.
The remaining 30 percent of Part B enrollees aren’t subject to the hold harmless provision and will pay the full $134 per month in 2018. This group includes beneficiaries who don’t receive Social Security benefits; enroll in Part B for the first time in 2018; are directly billed for their Part B premium; are eligible for both Medicare and Medicaid and have their premiums paid by state Medicaid agencies, and pay higher premiums because their incomes are higher.
Since 2007, beneficiaries with higher incomes have paid higher Part B premiums. These higher premiums apply to about 5 percent of people with Part B.