How Does Income Affect Monthly Medicare Premiums?

Does my income affect my monthly premiums for Medicare

It can. If you are what Social Security considers a “higher-income beneficiary,” you for Medicare Part B, the health-insurance portion of Medicare. (Most enrollees don’t pay for Medicare Part A, which covers hospitalization.)
Medicare premiums are based on your modified adjusted gross income, or MAGI. That’s your total adjusted gross income plus tax-exempt interest, as gleaned from the most recent tax data Social Security has from the IRS. To set your Medicare cost for 2023, Social Security will likely rely on the tax return you filed in 2022 that details your 2021 earnings. If your MAGI for 2021 was less than or equal to the “higher-income” threshold — $97,000 for an individual taxpayer, $194,000 for a married couple filing jointly — you will pay the “standard” of $164.90 a month. At higher incomes, premiums rise, to a maximum of $560.50 a month if your MAGI exceeded $500,000 for an individual, $750,000 for a couple. You can ask Social Security to adjust your premium if a caused significant income reduction or financial disruption in the intervening tax year — for example, if your marital status changed, or you lost a job, pension or income-producing property. You’ll find detailed information on the Social Security web page

Keep in mind br

If you pay a higher premium, you are not covered by the rule that prevents most Social Security recipients from seeing their benefit payment go down if Medicare rates go up. “Hold harmless” only applies to people who pay the standard Part B premium and have it deducted from their Social Security benefit. Premiums for Medicare Part D (prescription-drug coverage), if you have it, also . Updated September 27, 2022

More on Social Security and Medicare

Q& A Tool

Find the answers to the most common Social Security questions such as when to claim, how to maximize your retirement benefits and more. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures

Close In the next 24 hours, you will receive an email to confirm your subscription to receive emails related to AARP volunteering. Once you confirm that subscription, you will regularly receive communications related to AARP volunteering. In the meantime, please feel free to search for ways to make a difference in your community at Javascript must be enabled to use this site. Please enable Javascript in your browser and try again.