How Much You'll PayFor Medicare in 2011

Medicare just announced the 2011 rates for monthly premiums for Part B coverage of doctor’s visits and outpatient treatment and Part D coverage of prescription drugs. The big news for next year: For the first time, higher-income beneficiaries (about 5% of all Medicare recipients) will pay a Part D surcharge. They’ll pay the regular Part D premium to their private insurance plan and will pay the income-related adjustment to Medicare.

Also, new Medicare beneficiaries in 2011 will pay higher Part B premiums than current beneficiaries, who are protected against premium increases in years like this in which Social Security cost-of-living adjustments aren’t large enough. (See How to Avoid the Medicare High-Income Surcharge.)

Here’s what you’ll pay in monthly premiums in 2011, depending on your income level and year of enrollment:

Individuals with modified adjusted gross income less than $85,000 and married couples filing jointly with less than $170,000• Part B premium (first-time Medicare enrollees in 2011): $115.40 per month• Part B premium (first-time enrollees in 2010): $110.50 per month• Part B premium (enrolled in 2009 or before): $96.40 per month• Part D surcharge: none

Individuals with modified adjusted gross income from $85,000 to $107,000 and married couples filing jointly with incomes from $170,000 to $214,000• Part B premium: $161.50 per month• Part D surcharge: $12 per month

Individuals with income from $107,000 to $160,000 and married couples filing jointly with income from $214,000 to $320,000• Part B premium: $230.70 per month• Part D surcharge: $31.10 per month

Individuals with income from $160,000 to $214,000 and married couples filing jointly with income from $320,000 to $428,000• Part B premium: $299.90 per month• Part D surcharge: $50.10 per month

Individuals with income of more than $214,000 and married couples filing jointly with income of more than $428,000• Part B premium: $369.10 per month• Part D surcharge: $69.10 per month