Medicare's Income-Related Premiums Will Rise in 2018

Here are some implications of the recently passed Medicare Access and CHIP Reauthorization Act of 2015 for higher-income Medicare beneficiaries, according to a Kaiser Family Foundation analysis:

·         Part B premiums will rise from $238 to $310/month for beneficiaries with incomes from $133,501-$160,000.

·         The law raises Medicare premiums to cover 65% of program costs (from 50%) for this income bracket.

·         For incomes between $160,001 to $214,000, monthly Part B premiums will rise from $310 to $381 in 2018.

·         Premiums for this income bracket would cover 80% of program costs (rather than 65%).

·         2% of beneficiaries would see their premiums rise due to this provision if it were implemented this year.

·         These premium increases are expected to raise Medicare's revenues by $34.3 billion from 2018-2025.

Source: Kaiser Family Foundation, June 3, 2015