Medicare, the federal health insurance program for older Americans, is available regardless of income levels. But that doesn’t mean everyone pays the same premiums. There are two areas where high-income recipients can expect to pay a bit more.
Part B Premiums
Medicare Part B, which covers doctor visits and other outpatient care, is one of two areas where what you pay is tied to your income level. Its base monthly premium as of 2023 is $164.80. But that premium rises above a certain income level. If you claimed a modified adjusted gross income (MAGI) of more than $97,000 on your individual tax return, or more than $194,000 on a joint tax return, then you will face a higher cost each month. For example, if your individual MAGI is between $183,000 and $500,000, or your joint MAGI is between $366,000 and $750,000, your monthly Part B premium would be $527.50.1
Part D Premiums
Medicare Part D’s income adjustments are not as dramatic. Base premiums vary because Part D’s prescription drug coverage is provided by private insurers, but those in the highest income tier—more than $500,000 for individuals or $750,000 for joint filers—pay an extra $76.40 in premiums per month.
Medicare in Perspective
Wealthy individuals and couples don’t face a serious burden from Medicare premiums, but it is not pleasant to be taken by surprise by the higher costs assessed. As you navigate the health care options for your retirement years, it’s worth understanding the system’s costs, including where you may pay more than the average recipient. Your wealth advisor can help with retirement health care planning, including long-term care and other costs not covered by Medicare.
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