Why Is My Medicare Premium Over $500?
The standard Medicare Part B premium in 2023 is $164.90. That’s the monthly premium about 92% of Medicare beneficiaries pay.
But for about 8% of individuals on Medicare, their premium is more than that. If your Medicare premium is as high as $560.50, we’re going to explain why and what you might be able to do about it.
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Medicare Premiums Over $500
Medicare Part B premiums can go as high as $560.50 per month, though a very small percentage of the population pays that much.
Most people pay $164.90 per month, which is the standard monthly premium for Medicare Part B in 2023. However, if you have a higher-than-average income, your Part B premiums start going up on a sliding scale.
How much extra you pay is based on the income you reported to the IRS two years ago. So for 2023, your 2021 tax returns will determine your Income-Related Monthly Adjustment Amount (IRMAA).
How Much More You’ll Pay
Each year, the income brackets for Part B premium adjustments change slightly.
For 2023, the standard monthly Part B premium applies to anyone who reported $194,000 or less on their 2021 joint tax return. For singles, that amount is $97,000 or less.
The next income bracket is $194,000-$246,000 for married filing jointly and $97,000-$123,000 for singles. In this bracket, you’ll pay $230.80 per month, or about 40% more.
There are six income brackets in total, with the highest bracket being $750,000 or above for those filing a joint tax return and $500,000 or above for those filing individually. These Medicare beneficiaries will see a 2023 Part B premium of $560.50, over 3x the standard Part B premium.
Here’s a look at the Part B IRMAA chart for 2023:
Does Everyone Pay This Premium?
Every Medicare beneficiary pays the Medicare Part B premium, regardless of whether they have just Original Medicare, a Medicare Supplement, or a Medicare Advantage plan.
Even though Medicare Advantage plans are an alternative to Original Medicare, you still must pay the Medicare Part B premium.
The Part B monthly premium is, in most cases, deducted from your Social Security check each month.
Can I Lower My Part B Premium?
Many clients we work with turn 65 and retire, meaning their income goes down drastically. However, their Part B premium may still be higher because it’s based off their taxable income from two years ago.
If your income is lower now than it was two years ago, you can report a life-changing event to Medicare, which may reduce your IRMAA, or the surcharge you pay for Medicare Part B.
Examples of life-changing events include getting married, divorced, losing your job, or losing your pension.
If any of these things happened to you within the past two years, complete the IRMAA life-changing event form and take it to your local Social Security office.
We often help clients with this form to reduce their Part B premium. If you need help, please contact our office and we will assist you with your Medicare questions and enrollments.
Learn More: How Income Affects Your Medicare Costs In 2022
We’re Here to Help
If your Medicare premium is higher than expected, please contact our office! We have licensed insurance agents ready to help you understand your costs in Medicare.
Whether it’s filling out a life-changing event form, shopping the market, or evaluating your coverage options, we are here to help you.
You can schedule an appointment directly on an agent’s calendar using our online scheduling form. We look forward to helping you!
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