Are Medicare Premiums Income Based?
April 2, 2024 | Todd Lewison
When it comes to Medicare, there’s a lot to consider beyond just the basic coverage options. One crucial aspect that often catches new enrollees off guard is the fact that Medicare premiums are income-based. This means that your premium amount for Medicare Part B may vary depending on your income level, potentially resulting in higher costs for certain individuals.
In this blog, we’ll cover this important topic so you can better understand how Medicare premiums are determined and what factors come into play.
Are Medicare Premiums Income Based?
Although there is a standard premium amount for Medicare Part B, you may end up paying more if you were a high income earner before or when you enroll into your medicare coverage.
How Do I Know How Much Medicare Will Cost Me?
Working with an experienced insurance broker can help you understand exactly how much your Medicare coverage will cost you and, in many cases, even help you save money. The trusted Medicare agents at Twin City Underwriters provide personalized guidance based on your income and circumstances, ensuring that you make informed decisions about your Medicare plan.
Medicare Part A Premium:
For most individuals who paid taxes while working, they will not have to pay a Medicare Part A premium. If you did not pay enough taxes to receive Medicare Part A premium-free, you could pay up to $505 every month.
Medicare Part B Premium:
In 2024, the standard Medicare Part B premium is $174.70 and depending on your income you may pay more. Medicare determines this based on your modified adjusted gross income reported on your IRS tax return from 2 years prior. If you are required to pay more than the standard premium amounts, this is referred to as Income Related Monthly Adjustment Amounts (IRMAA).
Find out more in our blog: What is IRMAA?
Medicare Part C & Part D Premium:
If you are required to pay an income-related monthly adjustment to your Part B premium, you will also be responsible for paying an additional amount if enrolled in supplemental insurance such as a Medicare Advantage Plan with drug coverage (MAPD) or a Medicare Part D prescription drug plan (PDP).
To determine how much your income-related monthly adjustment amount will be we advise referencing this guide from Medicare or talking to one of our agents.
Where to Find Medicare Help
Determining your Medicare premiums is just one part of the extensive Medicare puzzle. Fortunately, you don’t have to do it alone; the experienced team at Twin City Underwriters helps people like you understand their medicare options and enroll in a plan that meets your unique needs.
Choosing a Medicare plan can be difficult. Twin City Underwriters helps Medicare recipients in Minnesota, Wisconsin, North Dakota, South Dakota, Iowa and Florida find the Medicare plan that meets their unique needs. Schedule a one-on-one meeting with one of our Medicare insurance brokers to get your questions answered!
Do you need help with Medicare, insurance and health plans? Explore your options with Allina Health Aetna, BlueCross BlueShield of Minnesota, Medica, UCare, United HealthCare and more. We work with you to find the best plan for your needs and budget. Contact us today to get started.
