Medicare Part B Premiums: Beneficiaries with Higher Income

According to Social Security Online, “The Medicare Modernization Act changed how Medicare Part B premiums are calculated for some higher income beneficiaries. The majority of Medicare beneficiaries are not affected…For most beneficiaries, the government pays a substantial portion – about 75 percent – of the Part B premium and the beneficiary pays the remaining 25 percent.”

”Since 2007, higher income beneficiaries have been paying a larger percentage of their Part B premium based on income they reported to the Internal Revenue Service (IRS). In 2010, higher income beneficiaries will pay a monthly premium equal to 35, 50, 65, or 80 percent of the total cost, depending on what they reported to the IRS.”

In 2010, if you file taxes as “ married filing jointly” and your modified adjusted gross income (MAGI) is greater than $170,000, you will pay a higher Part B premium. For all other filing statuses, you will pay a higher Part B premium if your MAGI is greater than $85,000.

Monthly Medicare Part B Premiums for 2010

	Income-related monthly adjustment amount	Total monthly premium amount
Individuals with a MAGI of $85,000 or less Married couples with a MAGI of $170,000 or less	$0.00	$110.50
Individuals with a MAGI above $85,000 up to $107,000 Married couples with a MAGI above $170,000 up to $214,000	$44.20	$154.70
Individuals with a MAGI above $107,000 up to $160,000 Married couples with a MAGI above $214,000 up to $320,000	$110.50	$221.00
Individuals with a MAGI above $160,000 up to $214,000 Married couples with a MAGI above $320,000 up to $428,000	$176.80	$287.30
Individuals with a MAGI above 214,000 Married couples with a MAGI above $428,000	$243.10	353.60