How much will I pay in premiums for Medicare Part B in 2014? And is there still a high-income surcharge for Part B and Part D prescription-drug coverage?
SEE ALSO: Special Report on Navigating Medicare
The monthly premium for Medicare Part B remains $104.90 for most people in 2014 - the same as in 2013. Seniors whose 2012 adjusted gross income (plus tax-exempt interest income) was more than $170,000 if married filing jointly or $85,000 if single will continue to pay higher premiums, as they have since 2007. The high-income surcharges remain the same as in 2013. If your gross income crosses the threshold, your total monthly premiums will range from $146.90 to $335.70 per person per month, depending on your income.
High-income seniors will also pay extra for their Medicare Part D prescription-drug coverage. The monthly surcharge of $12.10 to $69.30 (depending on income) will be added to the insurer's premiums (see the table below). The Part D surcharges are slightly higher than they were in 2013.
Both the Part B and Part D surcharges are based on your income in 2012, which is the last tax return the government has on file for most people. You can contest the surcharges if your income has dropped since then because of certain "life-changing events": getting married or divorced or becoming widowed; you or your spouse retiring or reducing your work hours; or losing income-producing property due to a disaster. For more information, see Medicare Premiums: Rules for Higher-Income Beneficiaries.
The Centers for Medicare and Medicaid Services also announced that the Medicare Part A deductible, which people pay when admitted to the hospital, will increase by $32 in 2014, to $1,216. That deductible covers up to 60 days of Medicare-covered inpatient hospital care. Beneficiaries will pay $304 per day for days 61 through 90 in 2014 (up from $296 in 2013) and $608 per day for hospital stays beyond 90 days (up from $592 in 2013). The daily coinsurance rate for days 21 through 100 in a skilled-nursing facility rises from $148 to $152.
For more information about open enrollment for 2014 Medicare Part D or Medicare Advantage plans, which runs until December 7, see Time for Medicare Open Enrollment.
|2012 ADJUSTED GROSS INCOME|
|$85,000 or less (single), $170,000 or less (joint)||$85,001 to $107,000 (single), $170,001 to $214,000 (joint)||$107,001 to $160,000 (single), $214,001 to $320,000 (joint)||$160,001 to $214,000 (single), $320,001 to $428,000 (joint)||More than $214,000 (single), more than $428,000 (joint)|
|2014 Medicare Part B monthly premium||$104.90||$146.90||$209.80||$272.70||$335.70|
|2014 Medicare Part D monthly premium||premium only||$12.10 surcharge||$31.10 surcharge||$50.20 surcharge||$69.30 surcharge|
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- Medicare Part B
- adjusted gross income