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?
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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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.
-
How to Add Your Driver’s License or State ID to Google WalletStore and use your digital ID securely on your Android device for TSA, age verification and more.
-
I Retired at 60 Two Years Ago With $3.1 Million. My 62-Year-Old Wife Still Works Because She Wants to, but She Resents My Free Time. Help!We asked a psychologist and a mediation expert for advice.
-
Credit Report Error? They All Mattercredit & debt Don't dismiss a minor error. It could be the sign of something more serious.
-
Insurance for a Learning Driverinsurance Adding a teen driver to your plan will raise premiums, but there are things you can do to help reduce them.
-
Getting Out of an RMD Penalty
retirement When your brokerage firm miscalculates your required minimum distributions, you have recourse.
-
529 Plans Aren’t Just for Kids529 Plans You don’t have to be college-age to use the money tax-free, but there are stipulations.
-
When to Transfer Ownership of a Custodial Accountsavings Before your child turns 18, you should check with your broker about the account's age of majority and termination.
-
Borrowers Get More Time to Repay 401(k) Loans
retirement If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it -- thanks to the new tax law.
-
When It Pays to Buy Travel Insurance
Travel Investing in travel insurance can help recover some costs when your vacation gets ruined by a natural disaster, medical emergency or other catastrophe.
-
It’s Not Too Late to Boost Retirement Savings for 2018
retirement Some retirement accounts will accept contributions for 2018 up until the April tax deadline.
