Higher Income Medicare Beneficiaries Will Pay More in 2011

Many retirees are getting ready to pay more for your Medicare.

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?

1 Response

  1. D D Smith

    The first increase for 85K-107K might be a little out of line, but couples with income above 200K should not mind paying a little more and as it progresses those people are certainly able to pay more. Most people including yours truly are concerned about the deficit but no one is willing to pay more to reduce it. Granted, governmental spending is out of control and should be reined in and better controlled but at some point in time we are going to have to pay enough to support the programs everyone expects from the government.

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