The Centers for Medicare & Medicaid Services has announced Medicare Part B premiums for 2018 and the base premium stays the same as this year at $134 a month. While that sounds like good news, most people will still be paying more for Part B.
- Reason 1 is that 70% of Social Security recipients have been paying an artificially low Part B rate of $109 per month due to a “hold harmless” provision that applies during periods of low inflation. These people will see a relatively big jump to the $134 a month level. Luckily, the average increase in social security benefits basically matches the Part B premium increase so their social security checks won’t really change.
- Reason 2 is that high-income taxpayers are hit with a premium surcharge that ranges from $53 – $294 per month, and the income brackets have been lowered so more people will be paying surcharges. This change will be an unpleasant surprise for those affected as the surcharge will likely be more than any increase in social security benefits.
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