Trick and treat
Social Security premiums will increase 2% in 2018 - about $25 per month for the average beneficiary – therefore Medicare Part B premiums could increase by that much. As a result, most retirees now paying $109 per month for Medicare Part B could see their premiums jump to about $134 per month in 2018, leaving them with little or no increase in their net Social Security benefits next year.
Tip: However, retirees who do not have Medicare premiums deducted directly from their Social Security benefits are not not covered by the “hold harmless” rule and many are already paying $134 per month for Medicare Part B premiums. They are likely to see no increase in Medicare premiums next year and will actually enjoy a net increase in their benefits in 2018.