2010 Medicare Part B Premiums for Higher Income Level Recipients
Posted on March 4th, 2010
Since 2007, the Medicare Modernization Act has changed how Medicare Part B premiums are calculated for some higher income beneficiaries. Higher income beneficiaries have been paying a larger percentage of their Part B premium based on income they report to the Internal Revenue Service (IRS).
The good news is that the majority of Medicare beneficiaries will continue to pay the same $96.40 Part B premium amount in 2010 that they paid in 2009. Beneficiaries with incomes of $85,000 or less ($170,000 or less for joint filers), who currently have the Social Security Administration withhold their Part B premium will not have any increase in their Part B premium for 2010. For those beneficiaries in that income range who did not have SSA withhold their premiums in 2009, the standard Medicare Part B monthly premium in 2010 will be $110.50, a 15% increase over the 2009 premium. The Medicare Part B premium is increasing in 2010 due to possible increases in Part B costs.
If your income is above $85,000 (single) or $170,000 (married couple), then your Medicare Part B premium may be higher than $110.50 per month. 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.
For income between $85,001 and $107,000 (individual) and $170,001 and $214,000 (joint return), the monthly premium would be $154.70. There are graduated premium increases with the highest being $353.60 per month for individuals with $214,000 or higher income and joint returns over $428,000. At each level, there may also be a late-enrollment penalty. A chart showing the Part B monthly premium amounts based on income can be found at 2010 Part B Premium Amounts for Persons with Higher Income Levels.
