Medicare Your Coverage Options

What’s the Medicare Part B premium in 2016?

Written by Diane Archer
Until recently, the Medicare Part B premium (medical insurance) was the same for everyone regardless of income, geography or health status, a quarter of the cost of Part B services. (Medicare Part A, hospital insurance, is premium-free if you have contributed into Social Security for at least 40 quarters.)  But, in 2003, Congress decided to impose higher premiums on wealthier people with Medicare. And, today, individuals earning more than $85,000 a year and couples earning more than $170,000, about 6 percent of the Medicare population, pay higher premiums than everyone else with Medicare. So, what’s the Medicare premium in 2016?

The Medicare Part B premium in 2016 is technically $121.80 for people whose yearly income is $85,000 or below. But, Social Security benefits did not go up this year.  As a result most people who get Social Security benefits will continue to pay the same Part B premium amount as they paid in 2015, typically $105. The only people who will pay $121.80 are people not receiving Social Security benefits, people enrolling in Part B for the first time in 2016, people with Medicare and Medicaid, though their state will pay the higher premium.

The Part B premium is a lot more for people with incomes over $85,000. People whose modified adjusted gross income from two years ago as reported on their federal tax return is above a certain amount will pay:

  • $170.50 a month, if their income is above $85,000 and no more than $107,000.
  • $243.60 a month, if their income is above $107,000 and no more than $160,000
  • $316.70 a month, if their income is above $160,000 and no more than $214,000
  • $389.80 a month, if their income is above $214,000

For married people filing a joint tax return, double the income to arrive at the premium amount.

The Part B annual deductible is $166.

People with incomes up to 135 percent of the federal poverty level, ($1,357 in monthly income for an individual and $1823 for a couple) are eligible for help paying their premiums through Medicaid or a Medicare Savings Program. For more information, including asset limits, visit Medicare Interactive.

Here’s more from Just Care:

FacebookTwitterPrintFriendlyComment

1 Comment

  • Diane Archer, your article on 2016 increases is misleading. I was 66 in 2015 and when I turned 66 in December SSA increased my benifit because I became full retirement age and I was drawing from my deceased husband. They raised my Medicare to $122.80. I am getting $70 more than before 2016 and my total income is from SSA. I done get a pension. I just hope they don’t increase me again in 2017. Something has to go but I don’t know what!

Leave a Comment

Read previous post:
Gage Skidmore
What becomes of Medicare and Medicaid after the presidential election?

In an opinion piece for the Wall Street Journal, Drew Altman, president of the Kaiser Family Foundation discusses the possible...

Close