Medicare Annual Enrollment 2024 – Choosing a New Medicare Advantage Plan
September 26, 2023
Is Medicare Advantage Risk-Based?
September 28, 2023Medicare Part B is the part of Original Medicare that covers outpatient services such as doctor visits, lab tests, preventive care, and durable medical equipment. Most people who enroll in Medicare Part B have to pay a premium for this coverage. The premium is the amount that you pay each month to have Medicare Part B. The premium may vary depending on your income, your enrollment status, and the type of Medicare Plan that you have. In this article, we will explain how much the Medicare Part B premium is, how it is determined, and how you can pay it.
How Much Does Medicare Part B Premium Cost?
The standard Medicare Part B premium for 2023 is $174.80 per month. However, some people may pay more or less than this amount depending on their situation. Some of the factors that affect your Part B premium are:
- Your income. If you have a higher income, you may have to pay an Income-Related Monthly Adjustment Amount (IRMAA) on top of your standard Part B premium. This is an extra fee that some higher-income Medicare beneficiaries have to pay to help cover the costs of Medicare. IRMAA is based on your modified adjusted gross income (MAGI) from two years ago. For example, if your MAGI in 2021 was above a certain threshold, you will have to pay IRMAA in 2023. The table below shows the possible IRMAA brackets for single and married filing jointly taxpayers, assuming a 0% or a 5% annualized inflation rate in August 2023. The actual numbers may vary depending on the final inflation data and any legislative changes.
| Income Bracket | Single | Married Filing Jointly | Standard Part B Premium | IRMAA Surcharge | Total Part B Premium |
|---|---|---|---|---|---|
| Below Threshold | Up to $102,000 | Up to $204,000 | $174.80 | $0.00 | $174.80 |
| First Bracket | $102,001 – $129,500 | $204,001 – $259,000 | $174.80 | $12.90 | $187.70 |
| Second Bracket | $129,501 – $161,500 | $259,001 – $323,000 | $174.80 | $33.30 | $208.10 |
| Third Bracket | $161,501 – $193,000 | $323,001 – $386,000 | $174.80 | $53.80 | $228.60 |
| Fourth Bracket | $193,001 – $500,000 | $386,001 – $750,000 | $174.80 | $74.20 | $249.00 |
| Fifth Bracket | Above $500,000 | Above $750,000 | $174.80 | $81.00 | $255.80 |
- Your enrollment status. If you enroll in Medicare Part B when you are first eligible for Medicare, you will pay the standard Part B premium or the IRMAA surcharge if applicable. However, if you enroll in Medicare Part B later than your initial enrollment period, you may have to pay a late enrollment penalty on top of your regular premium. The late enrollment penalty is 10% of the standard Part B premium for each full 12-month period that you could have had Part B but did not sign up for it. The penalty is added to your premium for as long as you have Part B.
- Your type of Medicare Plan. If you have Original Medicare (Part A and Part B), you will pay your Part B premium directly to Medicare or have it deducted from your Social Security benefit if you receive one. However, if you have a Medicare Advantage Plan (Part C) or a Medicare prescription drug plan (Part D), you may pay your Part B premium to your plan or to Medicare depending on your plan’s rules. Some Medicare Advantage Plans may offer lower or no premiums for Part B or Part D as part of their plan benefits.
How to Pay Your Medicare Part B Cost
If you have Original Medicare (Part A and Part B), you have several options to pay your Medicare Part B premium.
- If you receive Social Security or Railroad Retirement Board benefits, you can have your Part B premium deducted automatically from your benefit payment. This is the most convenient option for many people who receive these benefits.
- If you do not receive Social Security or Railroad Retirement Board benefits or if your benefit is not enough to cover your Part B premium, you will get a bill from Medicare every three months. You can choose to pay this bill by mail, online, or by phone.
- You can also sign up for Medicare Easy Pay, a free service that allows you to pay your Medicare premiums automatically from your checking or savings account.
If you have a Medicare Advantage Plan (Part C) or a Medicare prescription drug plan (Part D Plan), you may have different ways to pay your Medicare Part B premium depending on your plan’s rules.
- Some plans may pay part or all of your Part B premium for you as part of their plan benefits. In this case, you do not need to pay anything to Medicare or your plan for Part B.
- Some plans may require you to pay your Part B premium to them along with your plan premium. In this case, you will receive a bill from your plan that includes both premiums.
- Some plans may require you to pay your Part B premium to Medicare separately from your plan premium. In this case, you will receive a bill from Medicare for Part B and a bill from your plan for your plan premium.
Conclusion
Medicare Part B is the part of Original Medicare that covers outpatient services such as doctor visits, lab tests, preventive care, and durable medical equipment. Most people who enroll in Medicare Part B have to pay a premium for this coverage. The premium may vary depending on your income, your enrollment status, and the type of Medicare Plan that you have. You can pay your Part B premium directly to Medicare or to your plan depending on your situation.
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FAQS
How much does Medicare Part B cost in 2023?
The standard monthly premium for Medicare Part B is $164.90 in 2023 for most beneficiaries. The Part B deductible is $226 in 2023.
What does Medicare Part B cover?
Medicare Part B covers doctor visits, outpatient care, preventive services, lab tests, durable medical equipment, and other medical services. Part B helps pay for these.
When should I enroll in Medicare Part B?
You should enroll in Part B during your initial enrollment period when you’re first eligible, or you may have to pay a late enrollment penalty.
What if I didn’t enroll in Part B at first?
If you don’t sign up for Part B when first eligible, you’ll have to pay a 10% penalty for each 12-month period you delayed enrolling.
Who pays for Medicare Part B coverage?
You pay a monthly premium for Part B in addition to your Part A coverage. For most, the premium is deducted from your Social Security check.
Are there programs to help with Part B costs?
Yes, Medicare Savings Programs can help qualified beneficiaries pay Medicare premiums, deductibles, and other Part B costs.
Do I have to take Part B at 65?
Part B is optional but you should enroll when first eligible to avoid penalties. You must have Part B to join a Medicare Advantage Plan.
What is the Part B income-related monthly adjustment amount?
High income enrollees pay an extra monthly amount added to the Part B premium based on their income as reported on tax returns.
Is there a penalty if I enroll in Part B late?
Yes, you may have to pay a late enrollment penalty added to your monthly Part B premium if you don’t enroll on time.
How long do I have to pay Medicare Part B premiums?
You’ll pay a Medicare cost or Part B premium each month for as long as you have Part B coverage, unless you qualify for assistance through a Medicare Savings Program.
As you turn 65 you should also consider getting Medicare coverage such as Medicare Supplement insurance. Also consider Part D coverage as it complements Part A and B.
