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Medicare Premiums, Deductibles, and Co-Insurance

This topic provides tables that show Medicare premiums, deductibles, and co-insurance amounts in effect during various calendar years. This information is provided by the Federal Department Of Health and Human Services, Centers for Medicare and Medicaid Services.

Note that beginning in 2007, your Part B premium is based on your income. Some people will pay a higher premium based on their modified adjusted gross income. See the Medicare Part B Premiums For People With Higher Incomes section below for additional annual information.

Additionally, if you didn't sign up for Part B when you were first eligible, you may have to pay a late enrollment penalty for as long as you have Medicare. Your monthly premium for Part B may go up 10% for each full 12-month period that you could have had Part B, but didn’t sign up for it. Usually, you don’t pay a late enrollment penalty if you sign up for Part B during a special enrollment period.

Generally, announcements of rate changes for the following calendar year are made around the middle of October each year. These press releases may be found on the internet at: http://www.hhs.gov/news/.

Additional information may be found at:
http://www.medicare.gov/

Premiums:

Deductibles and Co-Insurance:

Medicare Part B Premiums For People With Higher Incomes

Most new enrollees will pay the standard premium amount shown above. However, beginning in 2007, 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. If this data is not available, SSA will use data from three years ago. Your modified adjusted gross income is your adjusted gross income plus your tax-exempt interest income.

See below for details of specific years:

·             Medicare Part B Premiums in 2012

·             Medicare Part B Premiums in 2011

·             Medicare Part B Premiums in 2010

·             Medicare Part B Premiums in 2009

·             Medicare Part B Premiums in 2008

·             Medicare Part B Premiums in 2007

Medicare Part B Premiums in 2012

The standard Medicare Part B monthly premium will be $99.90 in 2012, a $15.50 decrease over the 2011 premium of $115.40. However, most Medicare beneficiaries were held harmless in 2011 and paid $96.40 per month. The 2012 premium represents a $3.50 increase for them.

As required in the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, the Part B premium a beneficiary pays each month is based on his or her annual income. Specifically, if a beneficiary’s "modified adjusted gross income" is greater than the legislated threshold amounts ($85,000 in 2012 for a beneficiary filing an individual income tax return or married and filing a separate return, and $170,000 for a beneficiary filing a joint tax return) the beneficiary is responsible for a larger portion of the estimated total cost of Part B benefit coverage.

In addition to the standard Part B premium, affected beneficiaries must pay an income-related monthly adjustment amount. About 4 percent of current Part B enrollees are expected to be subject to these higher premium amounts.

The 2012 Part B monthly premium rates to be paid by beneficiaries who file an individual tax return (including those who are single, head of household, qualifying widow(er) with dependent child, or married filing separately who lived apart from their spouse for the entire taxable year), or who file a joint tax return are shown in the following table:

The charts below show the calendar year 2012 Part B monthly premium amounts based on income.

These amounts change each year. There may be a late-enrollment penalty.

Medicare Part B Premiums in 2011

NOTE: Most Medicare beneficiaries will not see a Part B monthly premium increase as a result of a "hold harmless" provision in the current law. This allows for 73 percent of beneficiaries to be protected from an increase raising the 2010 Part B monthly premiums from $110.50 to $115.40. The Social Security Administration announced there would be no increase in Social Security benefits for 2011. As a result of the hold-harmless provision, the increase in the Part B premium for 2011 will be paid by only a small percentage of Part B enrollees. Most Part B enrollees will pay the same monthly premium that they paid in 2008 ($96.40 was the 2008 standard monthly premium).

Approximately 27 percent of beneficiaries are not subject to the hold-harmless provision because they are new enrollees during the year (3 percent), they are subject to the income-related additional premium amount (5 percent), they do not have their Part B premiums withheld from social security benefit payments (19 percent), including those who qualify for both Medicare and Medicaid and have their Part B premiums paid on their behalf by Medicaid (17 percent).

Most people will pay a monthly Part B premium of $96.40 in 2011. This is the same as it was in 2010. Some people will pay a higher premium based on their modified adjusted gross income.

Your monthly premium will be higher if you file an individual tax return and your annual income is more than $85,000, or if you are married (file a joint tax return) and your annual income is more than $170,000.

If you meet these criteria, Social Security will use the income reported two years ago on your IRS income tax return to determine your premium (if unavailable, SSA will use income from three years ago). For example, the income reported on your 2009 tax return will be used to determine your monthly Part B premium in 2011. If your income has decreased since 2009, you can ask that the income from a more recent tax year be used to determine your premium, but you must meet certain criteria.

At the end of each year, Social Security will send you a letter if your Part B premium will increase based on the level of your income and to tell you what you can do if you disagree. For more information about Part B premiums based on income, call Social Security at 1-800-772-1213. TTY users should call 1-800-325-0778.

The charts below show the calendar year 2011 Part B monthly premium amounts based on income.

These amounts change each year. There may be a late-enrollment penalty.

Medicare Part B Premiums in 2010

NOTE: Most Medicare beneficiaries will not see a Part B monthly premium increase as a result of a "hold harmless" provision in the current law. This allows for 73 percent of beneficiaries to be protected from an increase raising the 2010 Part B monthly premiums from $96.40 to $110.50. The Social Security Administration announced there would be no increase in Social Security benefits for 2010. As a result of the hold-harmless provision, the increase in the Part B premium for 2010 will be paid by only a small percentage of Part B enrollees. Most Part B enrollees will pay the same monthly premium that they paid in 2008 ($96.40 was the 2008 standard monthly premium).

Approximately 27 percent of beneficiaries are not subject to the hold-harmless provision because they are new enrollees during the year (3 percent), they are subject to the income-related additional premium amount (5 percent), they do not have their Part B premiums withheld from social security benefit payments (19 percent), including those who qualify for both Medicare and Medicaid and have their Part B premiums paid on their behalf by Medicaid (17 percent).

Most people will pay a monthly Part B premium of $96.40 in 2010. This is the same as it was in 2009. Some people will pay a higher premium based on their modified adjusted gross income.

Your monthly premium will be higher if you file an individual tax return and your annual income is more than $85,000, or if you are married (file a joint tax return) and your annual income is more than $170,000.

If you meet these criteria, Social Security will use the income reported two years ago on your IRS income tax return to determine your premium (if unavailable, SSA will use income from three years ago). For example, the income reported on your 2008 tax return will be used to determine your monthly Part B premium in 2010. If your income has decreased since 2008, you can ask that the income from a more recent tax year be used to determine your premium, but you must meet certain criteria.

At the end of each year, Social Security will send you a letter if your Part B premium will increase based on the level of your income and to tell you what you can do if you disagree. For more information about Part B premiums based on income, call Social Security at 1-800-772-1213. TTY users should call 1-800-325-0778.

The charts below show the calendar year 2010 Part B monthly premium amounts based on income.

These amounts change each year. There may be a late-enrollment penalty.

Medicare Part B Premiums in 2009

Most people will pay the standard monthly Part B premium of $96.40 in 2009, as shown in the table above. This is the same as it was in 2008. Some people will pay a higher premium based on their modified adjusted gross income.

Your monthly premium will be higher if you file an individual tax return and your annual income is more than $85,000, or if you are married (file a joint tax return) and your annual income is more than $170,000.

If you meet these criteria, Social Security will use the income reported two years ago on your IRS income tax return to determine your premium (if unavailable, SSA will use income from three years ago). For example, the income reported on your 2007 tax return will be used to determine your monthly Part B premium in 2009. If your income has decreased since 2007, you can ask that the income from a more recent tax year be used to determine your premium, but you must meet certain criteria.

At the end of each year, Social Security will send you a letter if your Part B premium will increase based on the level of your income and to tell you what you can do if you disagree. For more information about Part B premiums based on income, call Social Security at 1-800-772-1213. TTY users should call 1-800-325-0778.

The charts below show the calendar year 2009 Part B monthly premium amounts based on income.

These amounts change each year. There may be a late-enrollment penalty.

Medicare Part B Premiums in 2008

Most people will pay the standard monthly Part B premium of $96.40 in 2008, as shown in the table above. Some people will pay a higher premium based on their modified adjusted gross income.

Your monthly premium will be higher if you file an individual tax return and your annual income is more than $82,000, or if you are married (file a joint tax return) and your annual income is more than $164,000.

If you meet these criteria, Social Security will use the income reported two years ago on your IRS income tax return to determine your premium (if unavailable, SSA will use income from three years ago). For example, the income reported on your 2006 tax return will be used to determine your monthly Part B premium in 2008. If your income has decreased since 2006, you can ask that the income from a more recent tax year be used to determine your premium, but you must meet certain criteria.

At the end of each year, Social Security will send you a letter if your Part B premium will increase based on the level of your income and to tell you what you can do if you disagree. For more information about Part B premiums based on income, call Social Security at 1-800-772-1213. TTY users should call 1-800-325-0778.

The charts below show the calendar year 2008 Part B monthly premium amounts based on income.

These amounts change each year. There may be a late-enrollment penalty.

Medicare Part B Premiums in 2007

Most people will pay the standard monthly Part B premium of $93.50 in 2007, as shown in the table above. Some people will pay a higher premium based on their modified adjusted gross income.

Your monthly premium will be higher if you file an individual tax return and your annual income is more than $80,000, or if you are married (file a joint tax return) and your annual income is more than $160,000.

If you meet these criteria, Social Security will use the income reported two years ago on your IRS income tax return to determine your premium (if unavailable, SSA will use income from three years ago). For example, the income reported on your 2005 tax return will be used to determine your monthly Part B premium in 2007. If your income has decreased since 2005, you can ask that the income from a more recent tax year be used to determine your premium, but you must meet certain criteria.

At the end of each year, Social Security will send you a letter if your Part B premium will increase based on the level of your income and to tell you what you can do if you disagree. For more information about Part B premiums based on income, call Social Security at 1-800-772-1213. TTY users should call 1-800-325-0778.

The charts below show the calendar year 2007 Part B monthly premium amounts based on income.

These amounts change each year. There may be a late-enrollment penalty.

Source

http://questions.medicare.gov/cgi-bin/medicare.cfg/php/enduser/std_adp.php?p_faqid=1979

http://questions.medicare.gov/cgi-bin/medicare.cfg/php/enduser/std_adp.php?p_faqid=1980

http://questions.medicare.gov/cgi-bin/medicare.cfg/php/enduser/std_adp.php?p_faqid=1847

http://www.cms.hhs.gov/apps/media/press/factsheet.asp?Counter=3865

http://www.cms.hhs.gov/apps/media/press/factsheet.asp?Counter=2488

http://www.cms.hhs.gov/apps/media/press/release.asp?Counter=1958

http://www.cms.hhs.gov/apps/media/press/factsheet.asp?Counter=3272

http://www.cms.hhs.gov/apps/media/press/factsheet.asp?Counter=3534

http://www.cms.hhs.gov/apps/media/press/factsheet.asp?Counter=4140

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