Beneficiaries that participate in Medicare Part B and Medicare Part D may have to pay higher premiums. This depends on your income, due to 2014 Income Related Monthly Adjustment Amounts. If you’re categorized as a “high earner” you’ll be paying more for Medicare parts B and D.
The standard Medicare Part B monthly premium will be $104.90 in 2014.
Beneficiaries in Medicare Part D prescription drug coverage plans do not have a standard premium. They pay premiums that vary from plan to plan. Beginning in 2011, the Affordable Care Act changed the 2014 Income Related Monthly Adjustment Amounts. It required Part D beneficiaries whose modified adjusted gross income exceeds the same income thresholds that apply to Part B premiums to also pay 2014 Income Related Monthly Adjustment Amounts.
2014 Income Related Monthly Adjustment Amounts
|Beneficiaries who file an individual tax return with income||Beneficiaries who file a joint tax return with income||Income-related monthly adjustment amount||Total monthly Part B premium amount|
|$85,000 or less||$170,000 or less||$0.00||$104.90|
|above $85,000 up to $107,000||above $170,000 up to $214,000||$42.00||$146.90|
|above $107,000 up to $160,000||above $214,000 up to $320,000||$104.90||$209.80|
|above $160,000 up to $214,000||above $320,000 up to $428,000||$167.80||$272.70|
|above $214,000||above $428,000||$230.80||$335.70|
Part D premiums by income
The chart below shows estimated Part B monthly premium based on your income. If your income is above a certain limit, you’ll pay an income-related monthly adjustment amount in addition to your plan premium.
|File individual tax return||File joint tax return||File married & separate tax return||You pay (in 2014)|
|$85,000 or less||$170,000 or less||$85,000 or less||your plan premium|
|above $85,000 up to $107,000||above $170,000 up to $214,000||not applicable||$12.10 + your plan premium|
|above $107,000 up to $160,000||above $214,000 up to $320,000||not applicable||$31.10 + your plan premium|
|above $160,000 up to $214,000||above $320,000 up to $428,000||above $85,000 up to $129,000||$50.20 + your plan premium|
|above $214,000||above $428,000||above $129,000||$69.30 + your plan premium|
Additional information about Medicare coverage, including specific benefits and deductibles, can be found at www.medicare.gov.