Boomers Feel the Pain

Social Security recipients may grumble about not receiving a cost-of-living adjustment for the second year in a row, but at least most of them won't see an increase in their monthly Medicare premium. The first wave of baby-boomers, who turn 65 in 2011, aren't so lucky.

The newest group of Medicare enrollees will pay $115.40 per month for Part B, which covers visits to doctors' offices and outpatient services. The majority of beneficiaries who enrolled before 2010 will continue paying $96.40 for Part B. Most recipients who enrolled in 2010 were charged $110.50 per month and will continue paying that amount.

But higher-income beneficiaries, regardless of when they enrolled, will pay a steep surcharge in 2011. Individuals with modified adjusted gross incomes of $85,000 or more and couples with joint incomes of $170,000 or more will pay at least $161.50 a month for Medicare Part B -- and they could pay as much as $369.10 per month. Only about 5% of beneficiaries are affected.

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And for the first time, higher-income beneficiaries will pay more for prescription-drug coverage, too. Their surcharge will range from $12 to $69.10 per month in 2011 on top of the regular Part D premium.