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?
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.
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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.
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