For most Medicare eligible people, the Part B premium is $104.90 (2014.) Part D premiums are determined every year during open enrollment. However, you may be required to pay more for these premiums based on your income.
Part B Premium Adjustments
In some cases, you may pay more than the standard Part B premium if your Modified Adjusted Gross Income from your IRS tax return from two years ago indicates that you made more than the following minimums:
- $85,000 for individual filings
- $170,000 for married/joint filings
While your premium adjustment can vary year to year according to your income, the following chart outlines what you can typically expect to pay.
Part D Premium Adjustments
You may also be assessed an income related adjustment for your Part D coverage. All Part D adjustments are payable to Social Security. The following chart shows estimated premium costs according to income.
Appealing your Premium Payments
You are free to appeal the additional fees for your Part B and D premiums if you encounter any of the following financial or life changes:
- A change to your marital status
- A reduction in work hours for you or your spouse
- Loss or retirement from a job for you or your spouse
- Loss of income-producing property due to events beyond your control, i.e. natural disasters
- Changes to pension plans for you or your spouse
- Receipt of settlement from an employer due to employer bankruptcy, reorganization, etc.
Navigating Income Related Adjustments
According to the Centers for Medicare and Medicaid Services, only 5% of Medicare recipients are subject to increased premiums due to income. However, if these additional costs do apply to you, the Wooten Agency is happy to help you navigate these additional fees, as well as help you choose a supplement or drug plan that fits your new insurance budget.