The Centers for Medicare and Medicaid Services (CMS) announced on Thursday, November 10, that the standard monthly premium for Medicare Part B beneficiaries not receiving Social Security benefits will be $134 in 2017, a 10 percent increase from the 2016 premium of $121.80.
Medicare Part B beneficiaries who do not receive Social Security benefits make up about 30 percent of all Medicare beneficiaries, but they pay to cover most Medicare cost increases for all beneficiaries, according to CMS as reported by Healthcare Finance.
The remaining 70 percent of Medicare beneficiaries will pay an average premium of $109, compared to $104.90 for the past four years – an increase of about 4 percent. Their Part B premium rates are low due to hold harmless provision that prevents premiums from increasing beyond the Social Security cost-of-living adjustment (COLA). The Social Security COLA for 2017 is 0.3 percent.
Medicare Part B beneficiaries who do not benefit from the hold harmless provision include those who do not receive Social Security benefits, those who enroll in Part B for the first time in 2017, and those who pay an income-related premium.
PERA on the Issues posts are written and compiled by the staff of Colorado PERA under the direction of Executive Director Greg Smith and the PERA Board of Trustees.
We encourage you to comment with your thoughts and feedback.
ColaAcronym for cost-of-living adjustment; a type of annual adjustment meant to prevent a person from losing buying power due to inflation.
I am tired of paying a higher premium for Medicare when my benefit isn’t as much as some who receive social security. My premium is automatic withdrawal from my bank account each month. Why does the government think that just because I draw PERA benefits that I should pay more for my premium? This is ridiculous!!!
I do not think that those of us who do not get Social Security but have been retired for a long time should have to pay higher premiums than those who do get Social Security. Many of us retired when income was much lower than nowadays and it really puts a burden on us when people who get higher salaries today, get Social Security and retirement, etc. They get much more than we do who just have retirement and maybe a small IRA benefit. It is OK but I don’t like to make less than many others and yet have to pay more for medicare than they do. I wish this could be adjusted better.