Changes for Medicare in 2017? Some Already Done and Others in the Pipeline

Changes for Medicare in 2017? Some Already Done and Others in the Pipeline

Medicare is the de facto healthcare for most retirees.  You are eligible when you turn 65.  While most people like the program, it is quite complex and everything from baseline premiums to supplemental coverage and other details can change from year to year.
Medicare Changes
The changes made thus far offer somewhat good news to retirees.  However, the future of this program may be in flux.

Prices for Medicare Part A  Increase by a Few Dollars

Medicare Part A covers care in hospitals and usually short term assisted care in nursing homes or in your own home.  The changes to premiums, deductibles and copayments are relatively modest.  According to Medicare.gov:

  • Part A premium cost will rise to $413 from $411 ($2 increase)
  • The hospital deductible will rise to $1,316 from $1,288 ($28 increase)
  • Coinsurance for longer term hospital stays will go from $322 to $329 ($7 increase)
  • Coinsurance for skilled nursing facility stays will go from $161 to $164.50 ($3.50 increase)

Modest Price Increases for Medicare Part B

The standard Medicare Part B premium has gone from $121.80 in 2016 to $134 in 2017.   However, your actual cost for this coverage will depend on your income, if this is your first year being covered or if you have Medicaid.

Your baseline cost will be reduced if you receive Social Security since the cost of living adjustment (COLA) for that benefit is lower than the increased costs of Medicare.

And, if your income is over $85,000 then your baseline cost goes up.

Costs for Prescription Coverage Have Also Increased and Options Have Decreased

Medicare Part D covers prescription drugs.  You can choose from a variety of plans from private insurers governed by Medicare. In 2017 there will be fewer options.  Twenty two plans will be available, this is the lowest number of options since 2006.  Each plan covers different drugs and have different premiums and deductibles.  The maximum deductible for Part D will be $400 in 2017, up from $360.Feeling confused?  It is always a good idea to assess your coverage whenever your health changes as well as during the open enrollment period each Fall.

Will the Federal Government Make Major Changes to Medicare?

The most important and dramatic change for Medicare in 2017 is whether or not it will still exist in 2018.

No one has a crystal ball and politics this year have been anything but predictable. However, Paul Ryan, the powerful Speaker of the House of Representatives has been very vocal about his desire to phase out or privatize Medicare.  On the other hand, President Donald Trump promised on the campaign trail that Medicare would remain intact.  And, Democrats are almost universally in favor of keeping Medicare.

So, what will happen?

Ryan wants to phase out Medicare at the same time he repeals the Affordable Care Act (also known as Obamacare).  These are priorities for the Republicans in Congress.  So, we may know sooner rather than later about the future of the program.

However, Medicare has always been a largely popular benefit and many seniors struggle to cover existing out of pocket healthcare costs.

If you have an opinion about the future of this program, you can contact your Representative and Senators.  Contact information can be found here: Congress.gov




NewRetirement Planner

Do it yourself retirement planning: easy, comprehensive, reliable

Disclaimer: The content, calculators, and tools on NewRetirement.com are for informational and educational purposes only and should not be construed as professional financial advice. NewRetirement Planner and PlannerPlus are tools that individuals can use on their own behalf to help think through their future plans, but should not be acted upon as a complete financial plan. We strongly recommend that you seek the advice of a financial services professional who has a fiduciary relationship with you before making any type of investment or significant financial decision. NewRetirement strives to keep its information and tools accurate and up to date. The information presented is based on objective analysis, but it may not be the same that you find on a particular financial institution, service provider or specific product’s site. All content, tools, financial products, calculations, estimates, forecasts, comparison shopping products and services are presented without warranty.

Terms of Use: Your use of this site constitutes acceptance of the Terms of Use.