I just found out that the Centers for Medicare & Medicaid Services has announced what’s in store for 2018 Medicare Part B premiums. The base premium stays the same as this year (2017) at $134 a month for many people.
However there are some big changes for the 70% of current Social Security recipients who have been paying a much lower amount of $109 a month. These folks will see a big jump to the $134 a month level. These folks will likely not see much or any of the promised 2% COLA – depending upon the size of their monthly check. Folks paying the $134/month in 2017 will see the 2% COLA (since their Part B premiums are not going up).
Those considered “high earners” (which starts at a Modified Adjusted Gross Income (MAGI) of $85,000 for a single and $170,000 for joint filers) will get to pay premium surcharges. These Part B surcharges start at an extra $53 per recipient per month and go to nearly $295 more each at the highest incomes ($160,000 – $320,000 based on 2016 tax returns).
The graduated high-income premium surcharges for seniors kick in for singles with a modified adjusted gross income of more than $85,000 and for couples with a MAGI of more than $170,000. An individual earning more than $85,000, but less than or equal to $107,000, will pay $187.50 in total a month in 2018, including a $53.50 surcharge, the same as in 2017.
The next bracket is compressed, so individuals making $133,500 to $160,000 will now face a $214.30 monthly surcharge, up from $133.90, bringing their total premium up from $267.90 a month to $348.30 a month. That’s a 60% hike.
The highest surcharge—which applies to individuals above $214,000 (couples above $428,000 this year) will apply to individuals with income above $160,000 (couples above $320,000) for 2018. That means Medicare Part B premium will top $10,000 a year ($10,286.40) for high income senior couples, with adjusted gross income of $320,000 or more, in 2018.
Here are the official numbers from the CMS press release, what you’ll pay per month for 2018, depending on your income, for individuals and couples filing a joint tax return (the 2018 income-related surcharges are based on MAGI reported on 2016 tax returns):
| Individual return with income: | Joint tax return with income: | Income-related surcharge | Total monthly premium amount |
| < or = $85,000 | < or = $170,000 | $0.00 | $134.00 |
| > $85,000 and < or = $107,000 | > $170,000 and < or = $214,000 | $53.50 | $187.50 |
| > $107,000 and < or = $133,500 | > $214,000 and < or = $267,000 | $133.90 | $267.90 |
| > $133,500 and < or = $160,000 | > $267,000 and < or = $320,000 | $214.30 | $348.30 |
| > $160,000 | > $320,000 | $294.60 | $428.60 |
And for comparison, this shows the picture for 2017 (2017 income-related surcharges are based on 2015 MAGI income):
| Individual return with income: | Joint tax return with income: | Income-related surcharge | Total monthly premium amount |
| < or = $85,000 | < or = $170,000 | $0.00 | $134.00 |
| > $85,000 and < or = $107,000 | > $170,000 and < or = $214,000 | $53.50 | $187.50 |
| > $107,000 and < or = $160,000 | > $214,000 and < or = $320,000 | $133.90 | $267.90 |
| > $160,000 and < or = $214,000 | > $320,000 and < or = $428,000 | $214.30 | $348.30 |
| > $214,000 | > $428,000 | $294.60 | $428.60 |
all the best… Mark