Medicare costs are going up in 2017

Medicare costs are going up in 2017.  Most people on Medicare currently pay a Part B premium of $104.90.  That will go up in January to about $109.

For people who are new to Medicare, or those who are not yet collecting Social Security, their Part B premium will be $134.

Part B of Medicare covers doctor visits, lab tests, physical therapy, chemo and radiation treatments, and most non-hospital services.

Part B of Medicare has a deductible and that is going up in 2017 to $183.  It is $166 in 2016.

Everyone pays the Part B premium

Whether your Part B premium is $109 or $134, you must pay that to enroll in a Medicare supplement or a Medicare Advantage plan. Without Part B, you don’t really have Medicare because Part A covers hospitalization – but not a visit to the Emergency Room.

Why Medicare costs are going up.

Medicare Part B is highly subsidized by taxpayers.

People on Medicare do not realize their Part B premium ($109 or $134) only covers about 25% of the cost of Part B services. The other 75% comes out of the federal budget – and this is what all the fighting over Medicare is all about.

The info below shows (in copper color of the last two columns) that, in 2014,  73% of Part B funding came from general revenues while 74% of Part D funding came from general revenues.

The total Medical budget was around $600 billion in 2014.  Of course, that is going up each year.

Total Part B expenses were about $259.8 billion in 2014.

Total Part D (drug coverage) expenses were $78.2 billion in 2014.

medicare funding sources

medicare funding sources

 

I have written about “Politics and Medicare” and what can be done to control rising costs in the program.

Some people get help with their Medicare costs based on their income.

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