retirement

Big Price Hikes for Medicare Premiums in 2017?

Some Medicare beneficiaries could see rate increases of 22% next year.

Retirees, brace yourselves: Some participants may see double-digit premium hikes for Medicare Part B in 2017.

See More: 11 Common Medicare Mistakes

Congress figures to step in before the bills are due, as it did last year. But if it doesn't, premiums for about 30% of beneficiaries could jump 22%, from $121.80 per month to $149 a month in January 2017, if the cost-of-living adjustment for Social Security is low, as expected. The COLA for next year is likely to be quite small: 0.2% to 0.8%. The actual rates for Part B (which covers the costs of doctor visits and outpatient care) will be announced in October and take effect January 1.

When Social Security COLAs are very low or nonexistent, as was the case this year, about 70% of folks are protected from paying more for Medicare than they receive in the form of a raise in their monthly benefit checks. That sticks other recipients with the bill, specifically:

  • those who enroll in Part B in 2017,
  • people who don’t have their premiums deducted from Social Security payments,
  • individuals with annual incomes above $85,000,
  • and people eligible for both Medicare and Medicaid.

For the last group, known as “dual eligibles,” Part B premiums are paid by the state where they live.

Most Popular

Dying Careers You May Want to Steer Clear Of
careers

Dying Careers You May Want to Steer Clear Of

It’s tough to change, but your job could depend on it. Be flexible in your career goals – and talk with your kids about their own aspirations, because…
September 13, 2021
5 Top Dividend Aristocrats to Beef Up Your Portfolio
dividend stocks

5 Top Dividend Aristocrats to Beef Up Your Portfolio

The 65-member Dividend Aristocrats are among the market's best sources of reliable, predictable income. But these five stand out as truly elite.
September 14, 2021
7 Best Commodity Stocks to Play the Coming Boom
commodities

7 Best Commodity Stocks to Play the Coming Boom

These seven commodity stocks are poised to take advantage of a unique confluence of events. Just mind the volatility.
September 8, 2021

Recommended

The Time to Start Your Holiday Shopping Is Right Now
Making Your Money Last

The Time to Start Your Holiday Shopping Is Right Now

Shortages of the popular toys and gifts due to logistical delays could be massive this holiday shopping season. Expecting guests? Toilet paper towels,…
September 28, 2021
Disability Insurance Can Provide COVID Coverage
Coronavirus and Your Money

Disability Insurance Can Provide COVID Coverage

If you are concerned about long-term complications from COVID-19, consider disability insurance coverage.
September 28, 2021
12 Things You Must Know About Claiming and Maximizing Your Social Security Benefits
Basics

12 Things You Must Know About Claiming and Maximizing Your Social Security Benefits

Claiming Social Security benefits at the right time means more money in your pocket. Here's a guide to everything from knowing your full retirement ag…
September 27, 2021
Your Doctor is Retiring. Here's How to Find a New Physician
health insurance

Your Doctor is Retiring. Here's How to Find a New Physician

More doctors are considering quitting due to burnout from the pandemic. If you must find a new physician, get recommendations from friends and review …
September 24, 2021