Medicare Part B Cost

Medicare Part B Cost. What is Medicare Part B monthly cost for premiums. Learn how premiums change with income.

Part B monthly premium beginning January 1, 2010 increase to $110.50 due to the increased cost of providing coverage. This is 15% higher than the 2009 premium. Beneficiaries will still pay $96.40 monthly premium if they currently have their Part B premium withheld from their Social Security income - as long as their income is less than $85,000 for single or $170,000 for joint filers. New beneficiaries will be required to pay the higher $110.50 premium.

Income Reported by IRS
Social Security uses income reported on IRS income tax return from two years ago (or three if two is not available) to determine premiums. Premiums are re-figured annually when the IRS updates the beneficiary income. If a beneficiary receives monthly Social Security, Railroad Retirement, or Civil Service Retirement payments, Part B premiums are automatically deducted. Otherwise Medicare sends a statement for Part B premiums every 3 months for those who don't receive these benefits.

Part B Premium for Higher Incomes
For income above $85,000 single, $170,000 joint, following are the Part B premiums for 2010:

$154.70 - Income Between $85,001-$107,000 ($170,001-$214,000 joint)
$221.00 - Between $107,001-$160,000 ($214,001-$320,000 joint)
$287.30 - Between $160,001-$214,000 ($320,001-$428,000 joint)
$353.60 - Above $214,000 (Above $428,000 joint)

For married but filing separately:
$287.30 - Between $85,001-$129,000
$353.60 - Above $129,000

These amounts usually change annually.

Click here for information on who qualifies for Medicare.

To apply or answer questions regarding Medicare Part A or Part B, call 1-800-772-1213 or visit a local Social Security office.

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