Medicare Premiums for Higher-Income Beneficiaries

Medicare Premiums for Higher-Income Beneficiaries

Social Security AdministrationSocial security uses the most recent federal tax return. So for 2017 they likely are using the 2015 tax return.

They look at your Adjusted Gross Income plus Tax-exempt Interest Income. They call this your MAGI.

If you file Joint then if MAGI is over $170,000, you will pay a higher Medicare Part B and Medicare prescription drug premium.

For other filing statuses, you pay higher premiums if MAGI is over $85,000.

 

If income goes down, you can get your monthly adjustment amount changed in certain circumstances:

  • change in marital status (divorced, married, or became widowed)
  • change in work hours for you or spouse or if one of you stopped working
  • you or your spouse experienced a scheduled cessation, termination, or reorganization of employer’s pension plan
  • you or your spouse received a settlement from an employer or former employer because of the employer’s closure, bankruptcy, or reorganization

The average Part B premium for 2017 is $109. ¬†For those that first enroll in 2017 or don’t have premiums deducted from Social Security the basic premium increases to $134.

The premiums go up anywhere from $53.50 to $294.60 ($214.30-$294.60 if filed Married Filing Separate) more per month depending on the income amount.

For more info and to see the specific increase for each income amount click here. See page 5 and 6 for the chart.

Linda Reinhardt

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