Medicare Part B Premium for Higher-Income Retirees – OLD

The Medicare Access and CHIP Reauthorization Act of 2015 provides a framework for Medicare Part B Premium for Higher-Income Retirees. Medicare Part B covers physician services, outpatient services, and some home health and preventive services. It is financed in part by beneficiary premiums which traditionally had been set at 25% of estimated program costs.

Since 2007 higher income beneficiaries have had to pay higher premiums. Several income brackets were created with enrollees in higher brackets paying a greater percentage of program costs.

Medicare Part B Premium for Higher-Income Retirees – 2016

In 2016, the standard Part B premium amount will be $121.80 (or higher depending on your income). Most people who get Social Security benefits will continue to pay a Part B premium of $104.90 each month. You’ll pay a different premium amount in 2016 if: (a) you enroll in Part B for the first time in 2016; (b) you don’t get Social Security benefits; (c) you have Medicare and Medicaid, and Medicaid pays your premiums; (d) your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount.

  • Part B premium for higher income, if standard premium is $104.90

    • If modified adjusted gross income is $85,000 or less for individual tax returns or $170,000 or less for joint tax returns: $104.90 per month (25% of the program cost)
    • If modified adjusted gross income is $85,001 to $107,000 for individual tax returns or $170,001 to $214,000 for joint tax returns: $146.90 per month (35% of the program cost)
    • If modified adjusted gross income is $107,001 up to $160,000 for individual tax returns or $214,001 up to $320,000 for joint tax returns: $209.80 per month (50% of the program cost)
    • If modified adjusted gross income is $160,001 up to $214,000 for individual tax returns or $320,001 up to $428,000 for joint tax returns: $272.70 per month (65% of the program cost)
    • If modified adjusted gross income is above $214,001 for individual tax returns or above $428,001 for joint tax returns: $335.70 per month (80% of the program cost)
  • Part B premium for higher income, if standard premium is $121.80

    • If modified adjusted gross income is $85,000 or less for individual tax returns or $170,000 or less for joint tax returns: $121.80 per month (25% of the program cost)
    • If modified adjusted gross income is $85,001 to $107,000 for individual tax returns or $170,001 to $214,000 for joint tax returns: $170.50 per month (35% of the program cost)
    • If modified adjusted gross income is $107,001 up to $160,000 for individual tax returns or $214,001 up to $320,000 for joint tax returns: $243.60 per month (50% of the program cost)
    • If modified adjusted gross income is $160,001 up to $214,000 for individual tax returns or $320,001 up to $428,000 for joint tax returns: $316.70 per month (65% of the program cost)
    • If modified adjusted gross income is above $214,001 for individual tax returns or above $428,001 for joint tax returns: $389.80 per month (80% of the program cost)

 

Medicare Part B Premium for Higher-Income Retirees – 2018 and later

Beginning in 2018, the new law will raise the premiums due from many higher-income enrollees. It does this mainly by lowering the thresholds at which beneficiaries must pay higher applicable percentages of program costs.

Here are 2018 percentages of the program cost for individual and joint beneficiaries with different categories of income. The absolute value will be determined by the standard Part B premium at that time.

  • If modified adjusted gross income is $85,000 or less for individual tax returns or $170,000 or less for joint tax returns: 25% of the program cost
  • If modified adjusted gross income is $85,001 to $107,000 for individual tax returns or $170,001 to $214,000 for joint tax returns: 35% of the program cost
  • If modified adjusted gross income is $107,001 up to $133,500 for individual tax returns or $214,001 up to $267,000 for joint tax returns: 50% of the program cost
  • If modified adjusted gross income is $133,501 up to $160,000 for individual tax returns or $267,001 up to $320,000 for joint tax returns: 65% of the program cost
  • If modified adjusted gross income is above $160,000 for individual tax returns or above $320,000 for joint tax returns: 80% of the program cost

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