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Basic Medicare Part B Premiums to Increase in 2017

Each year, the Centers for Medicare and Medicaid Services (CMS) sets the Medicare premium rates for the following calendar year. 

For 2017, CMS announced that the standard (basic) Medicare Part B premium amount will be $134.00 per month (or higher depending on your income).  However, most Members will pay less than this amount. This is because the Part B premium increased more than the cost-of-living increase for 2017 Social Security benefits. The Hold Harmless provision prevents an increase in Medicare Part B premiums greater than the dollar amount of the increase of an individual’s Social Security benefit.

The Hold Harmless provision limits the increase in Part B premium costs if:

  • You are entitled to Social Security benefits for November and December of the current year (2016);
  • The Medicare Part B premium will be or was deducted from your Social Security benefits in November 2016 through January 2017;
  • You don’t already pay higher Part B premiums because of Income-Related Monthly Adjustment Amount (IRMAA) eligibility; and
  • You do not receive a Cost of Living Adjustment (COLA) to your Social Security benefit large enough to cover the increased premium.

Members affected by the Hold Harmless provision will see an average premium increase of $4.10, from $104.90 to $109.00 per month in their Part B premium. 

For those not affected by the Hold Harmless provision, the basic Medicare Part B monthly premium will increase from $121.80 to $134.00 in 2017.

Note that the Part B deductible for Medicare will increase for 2017 from $166.00 per year to $183.00 per year.

Part B Basic premium



If you pay (average increase)



If you pay (average increase)



Are new to Medicare after December 2016






Part B deductible



How LACERS Retired Members Will Be Reimbursed
Because it cannot be determined what basic Medicare Part B premium amount LACERS Retired Members will be paying in 2017, LACERS will by default reimburse at $109.00 or $121.80 for Retirees whose 2016 basic Medicare Part B premium amount was $121.80.

In order to receive any other 2017 premium reimbursement, Retired Members must submit proof of their 2017 basic Medicare Part B premium. As proof, Members may submit a copy of their Social Security Administration Annual Notice of 2017 Benefit, Notice of Medicare Premium Payment Due (either the monthly or quarterly billing statement), or payment to Social Security or CMS for the Medicare Part B premium amount.

Only Retired Members with Medicare Parts A and B who are enrolled in a LACERS medical plan and wish to receive their Medicare Part B reimbursement need to submit proof. Surviving Spouses/Domestic Partners and Retirees with only Medicare Part B do not need to submit proof, since they do not qualify for the basic Medicare Part B reimbursement.
For more information on the 2017 Part B premium, please visit the Medicare website at https://www.medicare.gov/.

To contact LACERS, please call (800) 779-8328, TDD (888) 349-3996, email at LACERS.health@lacers.org, or visit the LACERS’ website at www.LACERS.org/retired