Medicare premiums to increase in January

November 22, 2012

Medicare beneficiaries will see their standard Medicare Part B monthly premium increase by $5 monthly to $104.90 beginning in January.

A small number of beneficiaries will continue to pay higher premiums based on their modified adjusted gross income, which depends on the extent to which an individual beneficiary’s modified gross income exceeds $85,000 ($170,000 for a married couple).  Only about 5 percent of Medicare beneficiaries pay higher rates.

As for Medicare Part D prescription drug coverage, premiums vary among plans. But the Affordable Care Act requires Part D beneficiaries whose modified adjusted gross income exceeds $85,000 ($170,000 for married couples) to pay a monthly adjustment amount. They will pay the regular plan premium on their Part D plan and pay an income-related adjustment.

Beneficiaries affected by the 2013 Part B and D income-related premiums will receive a notice before the end of December. The notice will include an explanation of the circumstances where a beneficiary may request a new determination.

For more information, visit www.medicare.gov