Many Americans are unsure what their costs will be for Medicare. In order to plan ahead for retirement it is important for those eligible for Medicare to be able to estimate these costs. In 2007, a new system for Medicare Part B went into effect. Higher income beneficiaries began paying a larger percentage of their Part B premium based on the amount of income they reported to the Internal Revenue Service. However, these larger premiums only affect a small percentage of Medicare beneficiaries.
The amount you will pay for your Medicare Part B is determined by your most recent tax returns. All taxpayers who filed individually and had a Modified Adjusted Gross Income(MAGI) of $85,000 or less will pay a standard monthly premium of $110.50. All taxpaying married couples who filed jointly with a a MAGI of $170,000 or less will also pay a monthly premium of $110.50. Those with a higher MAGI will pay a higher premium based on a sliding scale.
According to the Social Security Administration, only 5% of Medicare eligible Americans will pay more for their Part B premiums. The other 95% will pay the standard $110.50 monthly premium. If your MAGI falls between $85,000-$107,000 individually or $170,000-$214,000 jointly, you will pay $154.70 per month for your premium. For those with a MAGI between $107,000-$160,000 individually or $214,000-$320,000 jointly, your premium will be $221 per month. A MAGI of $160,000-$214,000 individually or $320,000-$428,000 jointly will result in a premium of $287.30. Finally, those with even an even higher MAGI will pay $353.60 for their Medicare Part B premiums.