Medicare Premiums- The cost of Part B

Medicare Premiums- What does Medicare Part B cost?

You pay a premium each month for Medicare Part B (Medical Insurance). Most people will pay the standard premium amount. However, if your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you may pay more.

How much does Medicare Part B cost?

Most people pay the Part B premium of $99.90 each month. You pay $140 per year for your Part B deductible and also co-insurance unless you have Medicare supplement insurance.  Some people automatically get Part B.  If you don't sign up for Part B when you're first eligible, you may have to pay a late enrollment penalty.  If you’re modified adjusted gross income as reported on your IRS tax return from 2 years ago (the most recent tax return information provided to Social Security by the IRS) is above a certain amount, you may pay more. 

Social Security will contact some people who have to pay more depending on their income. The amount you pay can change each year depending on your income. If you have to pay a higher amount for your Part B premium and you disagree (for example, if your income goes down), you should contact Social Security.

Part B premiums by income

If your yearly income in from 2 years ago was:

File Individual tax return                       File joint tax return               You pay


$85,000 or less                                       $170,000 or less                   $99.90
$85,000 to $107,000                              $170,000 to $214,000            $139.90
$107,000 to $160,000                            $214,000 to $320,000            $199.80
$160,000 to $214,000                            $320,000 to $428,000            $259.70

In contrast, Medicare Part A is paid for by a portion of Social Security tax.  It helps pay for inpatient hospital care, skilled nursing care, hospice care and other services.  Part A has coinsurance and a deductible of $1,156 unless you have a Medicare supplement that covers that amount.  This is not an annual deductible and can be every 60 days in some cases.

Medicare part A & B does not cover everything.  It is recommended to get a Medicare Supplement Insurance (Medigap Insurance) in order to make sure deductibles, co-insurance and co-pays are covered.  You can click the link if you would like to Compare Medicare supplement insurance instantly online.

Bill Loughead

SummitMedigap.com

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1-888-40-Summit (888-407-8664)

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