Medicare recently announced it’s 2011 rates for Part B coverage of doctor’s visits and outpatient treatments and for Part D prescription drug coverage. Higher income individuals have always paid more for Part B premiums, but for the first time, they will also pay a surcharge for Part D drug coverage.
Also, new Medicare beneficiaries in 2011 will pay higher Part B premiums than current beneficiaries, who are protected from premium increases in year like this in which Social Security cost-of-living adjustments aren’t large enough.
Here’s what you’ll pay in monthly premiums in 2011, depending on your income level and year of enrollment:
Modified adjusted gross income less than $85k for individuals, and less than $170k for married couples:
|Part B Premium||Part D Surcharge|
|First-time Medicare enrollees in 2011||$115.40 per month||None|
|First-time Medicare enrollees in 2010||$110.50 per month||None|
|Enrolled in 2009 or earlier||$96.40 per month||None|
Modified adjusted gross income from $85k to $107K for individuals, and married couples filing jointly with incomes from $170k to $214k:
|Part B Premium||$161.50 per month|
|Part D surcharge||$12 per month|
Individuals with income from $107k to $160k and married couples filing jointly with incomes from $214k to $320k:
|Part B Premium||$230.70 per month|
|Part D surcharge||$31.10 per month|
Individuals with income from $160k to $214k and married couples filing jointly with income from $320k to $428k:
|Part B Premium||$299.90 per month|
|Part D surcharge||$50.10 per month|
Individuals with income of more than $214K and married couples filing jointly with income of more than $428K:
|Part B Premium||$369.10 per month|
|Part D surcharge||$69.10 per month|
With Medicare, every beneficiary gets the same coverage and benefits no matter who you are. I would love to hear if you think this is a good way to help pay for Medicare. Or, do you think this is penalizing those who have worked and saved to put themselves in a position to have higher incomes during retirement. What is your opinion?