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–about six percent of the Medicare population–will pay:
- $187.50 a month, if their income is above $85,000 and no more than $107,000.
- $267.90 a month, if their income is above $107,000 and no more than $160,000
- $348.30 a month, if their income is above $160,000 and no more than $214,000
- $428.60 a month, if their income is above $214,000
To arrive at the premium amount for married people filing a joint tax return, double the income.
The Part B annual deductible is $183.00, a $17 increase from 2016.
People with incomes up to 135 percent of the federal poverty level, ($1,357 in monthly income for an individual and $1,823 for a couple in 2016) are eligible for help paying their premiums through Medicaid or a Medicare Savings Program.
For more than four decades, 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.) In 2007, wealthier people with Medicare began paying higher premiums.
Right now, Congressman Paul Ryan and others in Congress are considering Medicare reforms that would privatize Medicare and turn it into a voucher program; it would drive up costs for people with Medicare significantly. Right now, people with Medicare typically spend about $5,000 out of pocket for care that Medicare does not cover, and people with costly conditions spend about $10,000. If you oppose such reforms, please sign this Social Security Works petition.