As you approach the age of 65, which is the beginning age for Medicare, you may wonder what your share of the premium costs will be. Below we have reproduced a helpful article from www.Medicare.gov which outlines how premiums are calculated based upon the amount of income the make:
Part B costs
If you don’t sign up for Part B when you’re first eligible, you may have to pay a late enrollment penalty.
How much does Part B cost?
Part B premiums
You pay a premium each month for Part B. If you get Social Security, Railroad Retirement Board, or Office of Personnel Management benefits, your Part B premium will be automatically deducted from your benefit payment. If you don’t get these benefit payments, you’ll get a bill.
Most people will pay the standard premium amount. If your modified adjusted gross income is above a certain amount, you may pay an Income Related Monthly Adjustment Amount (IRMAA). Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago (the most recent tax return information provided to Social Security by the IRS).
The standard Part B premium amount in 2018 will be $134 (or higher depending on your income). However, some people who get Social Security benefits pay less than this amount ($130 on average). You’ll pay the standard premium amount (or higher) if:
- You enroll in Part B for the first time in 2018.
- You don’t get Social Security benefits.
- You’re directly billed for your Part B premiums (meaning they aren’t taken out of your Social Security benefits).
- You have Medicare and Medicaid, and Medicaid pays your premiums. (Your state will pay the standard premium amount of $134.)
- Your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount. If so, you’ll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your premium.
If you’re in 1 of these 5 groups, here’s what you’ll pay:
|If your yearly income in 2016 (for what you pay in 2018) was||You pay each month (in 2018)|
|File individual tax return||File joint tax return||File married & separate tax return|
|$85,000 or less||$170,000 or less||$85,000 or less||$134|
|above $85,000 up to $107,000||above $170,000 up to $214,000||Not applicable||$187.50|
|above $107,000 up to $133,500||above $214,000 up to $267,000||Not applicable||$267.90|
|above $133,500 up to $160,000||above $267,000 up to $320,000||Not applicable||$348.30|
|above $160,000||above $320,000||above $85,000||$428.60|
Part B deductible & coinsurance
- Most doctor services (including most doctor services while you’re a hospital inpatient)
- Outpatient therapy
- Durable medical equipment
If you have any questions please feel free to contact me