What are the Medicare Part B premiums going to be in 2008?
For the second year, the premiums for Medicare Part B will vary based on your income. Medicare Part B is the government's medical insurance that covers doctors' services, outpatient care and medical services that Medicare Part A doesn't cover.
The standard Part B monthly premium will be $96.40 in 2008, which is $2.90 more than last year's premium (a 3.1% increase).
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.
But those rates only apply to single filers whose adjusted gross income was $82,000 or less in 2006, or $164,000 or less if married filing jointly. Everyone else pays higher premiums.
These are the monthly premiums for single and joint filers based on 2006 income:
New Medicare Part B Prices
| SINGLE FILER INCOME | JOINT FILER INCOME | MONTHLY MEDICARE PART B PREMIUM |
| $82,200 or less | $164,000 or less | $96.40 |
| $82,201 - $102,000 | $164,001 - $204,000 | $122.20 |
| $102,001 - $153,000 | $204,001 - $306,000 | $160.90 |
| $153,001 - $205,000 | $306,001 - $410,000 | $199.70 |
| More than $205,000 | More than $410,000 | $238.40 |
These premiums are based on 2006 income because that is the most recent tax return on file with the IRS. If your income has decreased significantly since then because of certain "life-changing events," you may be able to ask the government to use your income from a more-recent tax year to calculate your premiums. Call the Social Security Administration at (800) 772-1213 and explain your situation.
For more information about contesting your new Medicare premiums, see my column on the topic from last year.
Interestingly, the Social Security cost-of-living adjustments for 2008 were also announced recently. Social Security benefits will increase by only 2.3% in 2008 -- while the basic Medicare Part B premium is rising by 3.1%.
For more information about the 2008 Social Security cost-of-living changes, see the Social Security COLA Factsheet.
For details about the 2008 Medicare Part B premiums, as well as the increases in Medicare co-payments and deductibles, see the Medicare FAQs about 2008 premiums and insurance rates at Medicare.gov.
-
To Keep Your Retirement on Track, Control These Three LeversThink of investing in terms of time, savings and risk. By carefully monitoring all three, you'll keep your retirement plans heading in the right direction.
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market TodaySHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
-
Getting Out of an RMD Penaltyretirement When your brokerage firm miscalculates your required minimum distributions, you have recourse.
-
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.
-
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.
-
How to Correct a Mistake on Your RMDs from IRAsretirement If you didn't take out the correct required minimum distribution because your brokerage firm made a mistake, the IRS may show some leniency.
-
Making the Most of a Health Savings Account Once You Turn Age 65
Making Your Money Last You’ll face a stiff penalty and taxes if you tap your health savings account for non-medical expenses before the age of 65. After that, the rules change.
-
Reporting Charitable IRA Distributions on Tax Returns Can Be Confusing
IRAs Taxpayers need to be careful when reporting charitable gifts from their IRA on their tax returns, or they may end up overpaying Uncle Sam.
-
Make the Most of the New Military Retirement Plan
retirement The government is offering a new retirement option so that service members who leave the military before qualifying for a pension can still receive some benefits.
-
How Changes in Income Affect Medicare Premiums
Medicare Medicare beneficiaries can see their premiums go up if their income rises, although for some that increase will be only temporary.
