Medicare Part B provides medical insurance coverage.
Medicare Part B is medical insurance to cover services such as doctors' visits, outpatient care, home health services and some preventive services. Part B is optional insurance that you can decline when you enroll in Medicare. If you do choose to enroll in Part B, you pay a monthly premium based on your income; however, there are no income limitations for Medicare Part B.
Income
The monthly Part B premium is based on the modified adjusted gross income (MAGI) you reported on your IRS tax return two years ago. The definition of MAGI is your taxable income plus your tax-exempt interest income.
Standard Premium
The monthly Part B standard premium for 2011 is $115.40. This premium applies to individuals who have a MAGI of $85,000 or less and to married couples who have a MAGI of $170,000 or less. If you have to pay more than the standard premium, Social Security will notify you.
2011 Additional Premiums
Individuals who have a MAGI from $85,001 to $107,000 and married couples who have a MAGI from $170,001 to $214,000 pay the standard premium plus $46.10. Individuals who have a MAGI from $107,001 to $160,000 and married couples with a MAGI from $214,001 to $320,000 pay the standard premium plus $115.30. Individuals with a MAGI from $160,001 to $214,000 and married couples who have a MAGI from $320,001 to $428,000 pay the standard premium plus $184.50. Individuals who have a MAGI above $214,000 and married couples with a MAGI above $428,000 pay the standard premium plus $253.70.
Considerations
Not only does your income affect the premiums you pay for Medicare Part B, income also affects the premiums you pay for Medicare Part D (prescription drug coverage). Individuals who have a MAGI from $85,001 to $107,000 and married couples who have a MAGI from $170,001 to $214,000 pay only the Part D plan premium. People with higher incomes pay the plan premium plus an additional amount that ranges from $12.00 to $69.10 a month.
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