The Social Security Administration (SSA) has released its 2019 Medicare Premiums: Rules for Higher-Income Beneficiaries annual report which provides guidelines for income-adjusted Medicare drug premiums. Higher-income beneficiaries are required to pay an income-adjusted premium amount for their Part B and prescription drug coverage. This adjustment is calculated based on your modified adjusted gross income (MAGI) and filing status from your most recent Federal tax return. While these premiums only affect roughly 5 percent of people with Medicare, it is important to know the income thresholds as they will directly impact the monthly amount you will be required to pay.
Part A Premium: Most people don’t pay a monthly premium for Part A (sometimes called “premium-free Part A“). If you buy Part A, you’ll pay up to $437 each month. If you paid Medicare taxes for less than 30 quarters, the standard Part A premium is $437. If you paid Medicare taxes for 30-39 quarters, the standard Part A premium is $240.
Part A Coinsurance & Deductibles (You pay):
- $1,364 deductible for each benefit period
- Days 1-60: $0 coinsurance for each benefit period
- Days 61-90: $341 coinsurance per day of each benefit period
- Days 91 and beyond: $682 coinsurance per each “lifetime reserve day” after day 90 for each benefit period (up to 60 days over your lifetime)
- Beyond lifetime reserve days: all costs
Part B Premium: The standard Part B premium amount is $135.50 (or higher depending on your income).
Part B Coinsurance & Deductibles (You pay):
- $185 per year. After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services (including most doctor services while you’re a hospital inpatient), outpatient therapy, and durable medical equipment (dme).
The SSA guide provides a number of different resources in order to determine whether you will be required to pay an income-related premium, all of which can be found here. In addition to the income tables, you will also find advice and helpful instructions on how to appeal a potential premium in the event you feel this was calculated in error.
Source: Medicare.gov, http://www.medicare.gov/your-medicare-costs/costs-at-a-glance/costs-at-glance.html