Medicare Premiums According to Your Income Level

Medicare Part B and Part D require higher income earners to pay higher premiums for their plan. If you have Part B and/or Part D benefits (which are optional), your premiums will be based in part on your reported income level from two years prior.

This means that Medicare Part B and Part D premiums in 2019 are based on a beneficiary’s reported income in 2017.

In this guide, we break down the costs of Medicare by income level, including costs for Medicare Part A, Part B, Part C, Part D and Medicare Supplement Insurance plans.

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Medicare Part B costs by income level

Medicare Part B (medical insurance) premiums are based on your reported income from two years prior. The higher premiums based on income level are known as the Medicare Income-Related Monthly Adjustment Amount (IRMAA).

The 2019 Medicare Part B premium costs by income level are as follows:

Medicare Part B Premium Cost by Income Level

2017 Individual tax return

2017 Joint tax return

2017 Married and separate tax return

2019 Part B monthly premium

$85,000 or less

$170,000 or less

$85,000 or less

$135.50

More than $85,000 and up to $107,000

More than $170,000 and up to $214,000

N/A

$189.60

More than $107,000 up to $133,500

More than $214,000 up to $267,000

N/A

$270.90

More than $133,500 up to $160,000

More than $267,000 up to $320,000

N/A

$352.20

More than $160,000 up to $500,000

More than $320,000 up to $750,000

More than $85,000 up to $415,000

$433.40

More $500,000

More than $750,000

More than $415,000

$460.50

There are several Medicare Savings Programs in place for qualified individuals who may have difficulty paying their Part B premium.

Medicare Part B includes several other costs in addition to monthly premiums. The 2019 Part B deductible is $185 per year.

After you meet your deductible, you typically pay 20 percent of the Medicare-approved amount for qualified Medicare Part B services and devices. Medicare typically pays the other 80 percent of the cost, no matter what your income level may be.

Medicare Part D costs by income level

Like Medicare Part B, Medicare Part D prescription drug plans use the IRMAA to determine plan premium costs by income level.

2019 Medicare Part D plan premiums, based on income level from 2017, are as follows:

Medicare Part D Premium Cost by Income Level

2017 Individual tax return

2017 Joint tax return

2017 Married and separate tax return

2019 Part D monthly premium

$85,000 or less

$170,000 or less

$85,000 or less

Your plan premium

More than $85,000 and up to $107,000

More than $170,000 and up to $214,000

N/A

Your plan premium + $12.40

More than $107,000 up to $133,500

More than $214,000 up to $267,000

N/A

Your plan premium + $31.90

More than $133,500 up to $160,000

More than $267,000 up to $320,000

N/A

Your plan premium + $51.40

More than $160,000 up to $500,000

More than $320,000 up to $750,000

More than $85,000 up to $415,000

Your plan premium + $70.90

More $500,000

More than $750,000

More than $415,000

Your plan premium + $77.40

There are some assistance programs that can help qualified lower-income beneficiaries afford their Medicare Part D prescription drug coverage.

Part D plans are sold by private insurance companies, so additional costs such as copayment amounts and deductibles can vary from plan to plan.

Medicare Part A costs are not affected by your income level

Your income level has no bearing on the amount you will pay for Medicare Part A (hospital insurance). Part A premiums (if you are required to pay them) are based on how long you worked and paid Medicare taxes.

Medicare Part A premium costs in 2019 are as follows:

Medicare Part A Premium Cost

Number of quarters you paid Medicare taxes

2019 Medicare Part A monthly premium

40 or more (at least 10 full years)

$0

30-39 quarters

$240

Fewer than 30 quarters

$437

Most Part A beneficiaries qualify for premium-free Part A coverage.

Two of the Medicare Savings Programs that may help pay Part A premium costs for qualified individuals include:

  • Qualified Medicare Beneficiary (QMB) Program
  • Qualified Disabled and Working Individuals (QDWI) Program

Medicare Advantage and Medigap costs by income level

Medicare Part C plans (also called Medicare Advantage) and Medicare Supplement Insurance plans (also called Medigap) are sold by private insurance companies. The cost of plans can vary from one provider to the next.

Find a Medicare Advantage plan that fits your income level

Did you know that a Medicare Advantage plan covers the same benefits that are covered by Medicare Part A and Part B (Original Medicare)? Did you know that some Medicare Advantage plans also offer benefits not covered by Original Medicare?

Some of these additional benefits – such as prescription drug coverage or dental benefits – can help you save some costs on your health care, no matter what your income level may be.

Some Medicare Advantage plans even feature $0 monthly premiums, though $0 premium plans may not be available in all locations. Find out if a $0 premium plan is available where you live by speaking with a licensed insurance agent at TTY Users: 711, 24 hours a day, 7 days a week.