 |
 |
 |
 |
|||||||||
|
|
 |
 |
 |
|
 |
|
 |
|
 |
|||
Questions And Answers About The Medicare Part B Premium
What is the Medicare Part B premium?
The Part B premium is the monthly amount paid by individuals for health coverage in Medicare Part B—a voluntary program that covers physician services, hospital outpatient care, durable medical equipment and other services including some home health care. The vast majority (about 93 percent) of Medicare beneficiaries are enrolled in Part B. Most individuals have the premium for their Part B coverage deducted from their Social Security, Railroad Retirement, or Federal government retirement checks.
How much is the Medicare Part B premium?
Currently, the standard premium for Medicare Part B health coverage is $96.40 per month.
Beneficiaries who file an individual tax return with income: |
Beneficiaries who file a joint tax return with income: |
Total monthly premium amount |
Less than or equal to $85,000 |
Less than or equal to $170,000 |
$96.40 |
Greater than $85,000 and less than or equal to $107,000 |
Greater than $170,000 and less than or equal to $214,000 |
$134.90 |
Greater than $107,000 and less than or equal to $160,000 |
Greater than $214,000 and less than or equal to $320,000 |
$192.70 |
Greater than $160,000 and less than or equal to $213,000 |
Greater than $320,000 and less than or equal to $426,000 |
$250.50 |
Greater than $213,000 |
Greater than $426,000 |
$308.30 |
What determines the amount of the Part B premium?
The standard Medicare Part B premium is determined by a formula contained in the 1997 Balanced Budget Act, which set the premium at 25 percent of total program costs. The remaining 75 percent of program costs are financed through general revenues. The Medicare Modernization Act of 2003 (MMA) required higher-income beneficiaries to ay a higher percentage of program costs, resulting in multiple tiers of premiums based on income.
Why does the Medicare Part B premium increase every year?
Part B premiums have increased over the years because the premium formula is tied to the rising cost of health care. Premiums will continue to rise quickly unless escalating health care costs are brought under control.
To provide a basic level of protection from rapidly accelerating health care costs, Congress enacted a law in the 1970s mandating that the Part B premium increase not exceed any beneficiaries' cost of living adjustment in their Social Security check. As a result, the net amount of the individual's Social Security check does not decrease.
The National Committee is a nonprofit, nonpartisan organization that acts in the interests of its membership through advocacy, education, services, grassroots efforts and the leadership of the board of directors and professional staff. The work of the National Committee is directed toward developing a secure retirement for all Americans.