Medicare Part B Premiums to Rise in 2013

How much will Medicare Part B premiums be in 2013?

Most people will pay $104.90 per month for Medicare Part B premiums, which is a $5 monthly increase from 2012’s premiums. But high earners will pay more, as they have since 2007. You’ll pay a high-income surcharge if your 2011 adjusted gross income (plus tax-exempt interest income) was more than $170,000 (for married people filing jointly) or more than $85,000 (for single filers). In that case, your total monthly premiums will range from $146.90 to $335.70, depending on your income.

High-income seniors will also pay extra for Medicare Part D prescription-drug coverage, with a monthly surcharge of $11.60 to $66.40 (depending on income) added to the insurer’s premium.

Here’s how the premiums break down by income:

2011 Individual Income: $85,000 or less
2011 Married Filing Jointly Income: $170,000 or less
2013 Medicare Part B monthly premium: $104.90
2013 Medicare Part D monthly premium: premium only

2011 Individual Income: $85,001 to $107,000
2011 Married Filing Jointly Income: $170,001 to $214,000
2013 Medicare Part B Monthly Premium: $146.90
2013 Medicare Part D Monthly Premium: $11.60 surcharge

2011 Individual Income: $107,001 to $160,000
2011 Married Filing Jointly Income: $214,001 to $320,000
2013 Medicare Part B monthly premium: $209.80
2013 Medicare Part D monthly premium: $29.90 surcharge

2011 Individual Income: $160,001 to $214,000
2011 Married Filing Jointly Income: $320,001 to $428,000
2013 Medicare Part B monthly premium: $272.70
2013 Medicare Part D monthly premium: $48.10 surcharge

2011 Individual Income: Above $214,000
2011 Married Filing Jointly Income: Above $428,000
2013 Medicare Part B monthly premium: $335.70
2013 Medicare Part D monthly premium: $66.40 surcharge

Also, you have until December 7 to pick your Medicare Part D or Medicare Advantage plan during open enrollment for 2013. See Sift Through Your Medicare Choices and The Best Resource for Comparing Medicare Plans for more information.

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