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What You'll Pay for Medicare Part D Coverage in 2016

As with Medicare Part B coverage, higher-income beneficiaries pay a surcharge for Medicare's prescription drug coverage.

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I used the Kiplinger Medicare calculator to determine the cost of Medicare Part B in 2016. Now I’m wondering who has to pay the high-income surcharge for Part D prescription-drug coverage?

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If your adjusted gross income plus income from tax-exempt interest is more than $85,000 (or $170,000 if you’re married filing jointly), you’ll pay a high-income surcharge to Medicare for Part D in addition to your insurer’s regular Part D premiums. This high-income surcharge runs from $12.70 to $72.90 per person per month, depending on your income.

Medicare Part D prescription-drug plans are provided by private insurers. The average cost of a Part D plan in 2016 is $33 per month, but the specific premium is based on the plan you select. You have from October 15 to December 7 to choose a plan for 2016. You can search for plans available in your area with the Medicare Plan Finder. See our Guide to Medicare Open Enrollment for more information about choosing a plan.

The income cutoffs are the same as they are for the Medicare Part B high-income surcharge. See the chart below.

Taxable Income Monthly Medicare
Part D Surcharge (per Person)
$85,001 - $107,000
(or $170,001 - $214,000 for joint filers)
$12.70
$107,001 - $160,000
(or $214,001 - $320,000 for joint filers)
$32.80
$160,001 - $214,000
(or $320,001 - $428,000 for joint filers)
$52.80
more than $214,000
(or more than $428,000 for joint filers)
$72.90

See How Much Will Your Medicare Part B Premiums Cost in 2016? for more information about Part B premiums and the high-income surcharge.

See Also: 50 Ways to Cut Your Healthcare Costs

Got a question? Ask Kim at askkim@kiplinger.com.