Is There An Income Limit For Part B?
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There is no income limit for Part B. However, the higher your income, the more you will have to pay in Part B premiums. The additional charge is called an Income Related Monthly Adjustment Amount (IRMAA). Here we will also cover the 2021 Part B costs and coverage.
Medicare Part B Premiums
While many people receive Medicare Part A benefits without having to pay premiums, every Medicare beneficiary has to pay monthly premiums for Part B. The standard Part B premium in 2021 is $148.50. Based on your income, you may have to pay more.
Even people with Medicare Advantage and Medicare Supplement plans must continue to pay their Part B premiums each month.
Part B Income Related Monthly Adjustment Amount (IRMAA)
Individuals or those married filing separately who made more than $88,000 in 2019 and married couples who made more than $176,000 in 2019 will pay more for Part B than the standard premium. The additional charge is called an Income Related Monthly Adjustment Amount (IRMAA).
The purpose of increasing the premium costs for people with higher incomes is to generate more revenue for the Medicare program. The increased prices affect only around 3% of Medicare beneficiaries since most seniors have modest incomes.
The increased charges are as follows for 2021:
- Individuals making between $88,000 and $111,000 and married couples making between $176,000 and $222,000 pay Medicare $207.90 each month for Part B
- Individuals making between $111,000 and $138,000 and married couples making between $222,000 and $276,000 pay Medicare $297.00 each month for Part B
- Individuals making between $138,000 and $165,000 and married couples making between $276,000 and $330,000 pay Medicare $386.10 each month for Part B
- Individuals making between $138,000 and $165,000, married couples making between $276,000 and $330,000, and married individuals filing separately making between $88,000 and $412,000 pay Medicare $475.20 each month for Part B
- Individuals making $500,000 or more, married couples making $750,000 or more, and married individuals filing separately making $412,000 or more pay Medicare $504.90 each month for Part B
These same income brackets apply to the Medicare Part D IRMAA.
Medicare Supplement Open Enrollment
When you are 65 and enrolling in Medicare, it’s the perfect time to think about whether or not you want to enroll in a Medicare Supplement plan, which can help reduce the out-of-pocket costs from Part A and Part B. Your Medigap Open Enrollment Period begins when you are 65 and first enrolled in Part B. You then have six months to select a Medicare Supplement plan without being turned away for health reasons.
Medicare enrollment can be complicated. Speak with one of our knowledgeable agents to simplify the process and answer any of your questions.
Medicare Part B Costs
For your Medicare Part B coverage, you will need to pay your monthly premiums along with a yearly deductible, copayments, and coinsurance. The 2021 Part B deductible is $203. Unlike Part A, this is a one-time cost. Copayments will add up toward the deductible, and you pay these when you visit hospital outpatient clinics. Once you have paid the deductible, your cost-sharing will include coinsurance of 20% of the Medicare-approved amount for covered services.
Medicare Part B Coverage
Medicare Part B covers preventive and medically necessary care, which includes ambulance services, clinical research, durable medical equipment, mental health care, and limited outpatient prescription drugs.
Wondering what your costs will be for Part B? Speak with one of our Medicare experts for personalized answers.
