You cannot be limited by your income for Medicare Part B, but your premium may be higher if you have a higher income. And, if you have a limited income, you may qualify for financial help through Medicaid.
How Your Part B Premium is Set
The standard Part B premium in 2021 is $148.50. Keep in mind that this number will likely increase by $1-4 every year as it has in the past decade.
That being said, not everyone falls under this standard. Part B premiums are determined by your modified adjusted gross income or MAGI. This is based on the tax return information gathered by Social Security through the IRS.
This information is filed jointly or individually depending on your marital status. If your single income is less than $88k, or your joint income of $176k or less, you fall under this standard premium. The average person, then, pays this. If, however, you have:
- $88-111k single or $176-222k joint income, your premium will be $207.90.
- $111-138k single or $222-276k joint income, your premium will be $297.00.
- $138-165k single or $276-330k joint income, your premium will be $386.10.
- $165-500k single or $330-750k joint income, your premium will be $475.20.
- $500k+ single or $750k+ joint income, your premium will be $504.90.
No matter your income, however, the Part B deductible remains the same. In 2021, this deductible is $203 and must be paid on a yearly basis before you receive any benefits.
What to Expect if You Have a Higher Income
Social Security will contact you when you become eligible for Part B and tell you your exact premium. At age 65 (when most people become eligible), your premium will be based on your income from 2 years prior.
What to Expect if You Have a Limited Income
Alternatively, you may have a limited income that makes paying the standard Part B premium difficult—if that is the case, you may qualify for Medicaid. Similar to the determination process for the Part B premium, you are eligible based on your modified adjusted gross income (MAGI), as well as your citizenship status. If you are unsure whether or not you qualify, contact the Social Security office.
If you have both Medicare and Medicaid, you should receive help with your Part B premium and other expenses through the Medicare Savings Program (MSP).
What To Do if You Can No Longer Afford Part B
Things change—because your Part B premium is determined by your MAGI from two years ago, circumstances may allow you to appeal for a lower payment. If you are in a situation that necessitates an updated, lower premium, you should contact the Social Security office and make an appeal.
Find Out Your Premium and Get the Coverage You Need
Determining your Medicare premiums and coverage requires insight, care, and concern. With Senior Insurance Consultants, you’ll have these and more. Give us a call at 620-664-2985.
