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The standard Medicare Part B monthly premium will
be $104.90 in January 2013, an increase of $5.00 from the 2012 amount of
$99.90.
Some beneficiaries will continue to pay higher
premiums based on their modified adjusted gross income. The monthly premiums
that include income-related adjustments for 2013 will be $146.90, $209.80,
$272.70, or $335.70, depending on the extent to which an individual beneficiary’s modified adjusted gross income exceeds
$85,000 (or $170,000 for a married couple). The highest premium rate applies
to beneficiaries whose incomes exceed $214,000 (or $428,000 for a married
couple). The Centers for Medicare & Medicaid Services estimates that
about 5 percent of Medicare beneficiaries pay the larger income-adjusted
premiums.
Beneficiaries in Medicare Part D prescription drug
coverage plans pay premiums that vary from plan to plan. Beginning in 2011,
the Affordable Care Act required Part D beneficiaries whose modified adjusted
gross income exceeds the same income thresholds that apply to Part B premiums
to also pay a monthly adjustment amount. These beneficiaries will pay the
regular plan premium to their Part D plan and will pay the income-related
adjustment to the Railroad Retirement Board (RRB). In 2013, the adjustment
amount ranges from $11.60 to $66.60.
The RRB withholds Part B premiums from benefit
payments it processes. The agency can also withhold Part C and D premiums
from benefit payments if an individual submits a request to his or her Part C
or D insurance plan. The RRB also collects Part D income-related adjustment
amounts, but must bill the enrollee as the agency is currently unable to
withhold these amounts from benefit payments.
The following tables show the income-related
premium adjustments for 2013. The Social Security Administration (SSA) is
responsible for all income-related monthly adjustment amount determinations.
To make the determinations, SSA uses the most recent tax return information
available from the IRS. For 2013, in most cases that will be the beneficiary’s 2011 tax return information. If that
information is not available, SSA will use information from the 2010 tax
return.
Those railroad retirement and social security
Medicare beneficiaries affected by the 2013 Part B and D income-related
premiums will receive a notice from SSA by December 2012. The notice will
include an explanation of the circumstances where a beneficiary may request a
new determination. Persons who have questions or would like to request a new
determination should contact SSA after receiving their notice.
Additional information about Medicare coverage,
including specific benefits and deductibles, can be found at www.medicare.gov.
2013
PART B PREMIUMS
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Beneficiaries
who file an individual tax return with income
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Beneficiaries
who file a joint tax return with income
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Income-related
monthly adjustment amount
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Total monthly
Part B premium amount
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Less than or equal to $85,000
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Less than or equal to $170,000
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$0.00
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$104.90
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Greater than $85,000 and less than or equal to $107,000
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Greater than $170,000 and less than or equal to $214,000
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$42.00
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$146.90
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Greater than $107,000 and less than or equal to $160,000
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Greater than $214,000 and less than or equal to $320,000
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$104.90
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$209.80
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Greater than $160,000 and less than or equal to $214,000
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Greater than $320,000 and less than or equal to $428,000
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$167.80
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$272.70
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Greater than $214,000
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Greater than $428,000
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$230.80
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$335.70
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The monthly premium rates paid by beneficiaries who are married, but file
a separate return from their spouses and who lived with their spouses at some
time during the taxable year, are different. Those rates are as
follows:
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Beneficiaries
who are married,
but file a separate tax return,
with income:
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Income-related
monthly adjustment amount
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Total monthly
Part B premium amount
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Less than or equal to $85,000
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$0.00
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$104.90
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Greater than $85,000 and less than or equal to $129,000
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$167.80
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$272.70
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Greater than $129,000
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$230.80
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$335.70
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