Medicare 2017 Deductibles Announced

Medicare 2017 Deductibles Announced

Medicare 2017 Deductibles Announced

2017 Medicare Parts A & B Premiums and Deductibles Announced. On October 18, 2016, the Social Security Administration announced that the cost-of-living adjustment (COLA) for Social Security benefits will be 0.3 percent for 2017. Because of the low Social Security COLA, a statutory “hold harmless” provision designed to protect seniors, will largely prevent Part B premiums from increasing for about 70 percent of beneficiaries. Among this group, the average 2017 premium will be about $109.00.  A modest increase compared to $104.90 for the past four years.

For the remaining roughly 30 percent of beneficiaries, the standard monthly premium for Medicare Part B will be $134.00 for 2017, a 10 percent increase from the 2016 of $121.80. Because of the “hold harmless” provision covering the other 70 percent of beneficiaries, premiums for the remaining 30 percent must cover most of the increase in Medicare costs for 2017 for all beneficiaries. This year, as in the past, the Secretary has exercised her statutory authority to mitigate projected premium increases for these beneficiaries. While continuing to maintain a prudent level of reserves to protect against unexpected costs. The Department of Health and Human Services (HHS) will work with Congress as it explores budget-neutral solutions to challenges created by the “hold harmless” provision.

“Medicare’s top priority is to ensure that beneficiaries have affordable access to the care they need,” said CMS Acting Administrator Andy Slavitt. “We will continue our efforts to improve affordability, access, and quality in Medicare.”
Medicare Part B beneficiaries below are not subject to the “hold harmless” provision.  These groups represent approximately 30 percent of total Part B beneficiaries.

  •  This  includes beneficiaries who do not receive Social Security benefits
  • those who enroll in Part B for the first time in 2017
  • those who are directly billed for their Part B premium
  • those who are dually eligible for Medicaid and have their premium paid by state Medicaid agencies
  •  those who pay an income-related premium

CMS also announced that the annual deductible for all Medicare Part B beneficiaries will be $183 in 2017 (compared to $166 in 2016). Premiums and deductibles for Medicare Advantage and prescription drug plans are already finalized and are unaffected by this announcement.

CLICK HERE FOR 2017 MEDICARE INFORMATION

For a custom one-on-one review of the right Medicare Supplemental Plan for you please contact us- Millennium Medical Solutions Corp (855)667-4621.

 

 

2012 Medicare B Deduction for Self-employed

2012 Medicare B Deduction for Self-employed

Some good news for small businesses owners on Medicare Part B.  The IRS is permitting for the 1st time self-employed people to deduct their Medicare Part B healthcare premiums.

What is Part B? Part B helps cover medically-necessary services like doctors’ services, outpatient care, durable medical equipment, home health services, and other medical services. Part B also covers some preventive services. The costs for Medicare part B have substantially risen form a modest $54 to a $99.90 minimum and now indexed for income.

Table 1: Part B Monthly Premium

 

 Beneficiaries who file anindividual tax return with income

  Beneficiaries who file a joint tax return with income

Your 2012 Part B Monthly Premium Is

If Your Yearly Income Is

$99.90

 $85,000 or less

$170,000 or less

 $139.90

 $85,001-$107,000

$170,001-$214,000

 $199.80

 $107,001-$160,000

$214,001-$320,000

 $259.70

 $160,001-$214,000

$320,001-$428,000

 $319.70

 Above $214,000

Above $428,000


source: www.medicare.gov

Prior to the 2010 tax year, the IRS did not permit the deduction to seniors who paid Medicare Part B health insurance premiums, according to a Bloomberg report.  Strangely the IRS did not release of this announcement but the deduction is on line 29 of the new 1040 tax form and applies to people who do not claim a tax deduction.

Anyone who is self-employed, regardless of age, may deduct the premiums paid for health insurance, under certain conditions such as insurance established under the business or in the name of the person who runs the business.

This posting is not necessarily tax advise and it is recommend to  check with you accounting professional before filing 2011Tax returns.

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