Medicare Part A Hospital Insurance Premium
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Total Funds Allocated
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Medicare taxes pay for your Part A Medicare hospital benefits.
Employers and employees pay these taxes.
Taxes you paid in the past provided benefits to others.
About 99 percent of Medicare beneficiaries do not pay a premium for Medicare Part A services since they have at least 40 quarters of Medicare-covered employment. However, some enrollees age 65 and over and certain persons with disabilities who have fewer than 30 quarters of coverage obtain Part A coverage by paying a monthly premium established according to a statutory formula.
This premium will be $451 for 2012, an increase of $1 from 2011. Individuals who have between 30 and 39 “quarters of coverage” may buy into Part A at a reduced monthly premium rate of $248 in 2012.
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The Centers for Medicare and Medicaid Services allocates approximately $800 or more each month per Medicare recipient to pay Medicare benefits. The amount varies by geographic region on a yearly basis.
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Medicare Part B Medical Insurance Premium
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Not Enough Dollars
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A Medicare Part B premium is withheld from your Social Security check each month. This pays for part of your Part B medical benefits.
The Medicare Part B premium for 2012 will be $99.90
If you have a higher income, your Part B premium will be higher and you will pay a Part D surcharge (see next two sections).
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Medicare funds are not designed to cover all of your medical care costs.
Additional medical expense coverage can be purchased to cover PART of your other medical care costs.
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Medicare Part D Prescription Drug Plan Premium
You pay a Part D premium to your private insurance company for either a stand-alone Prescription Drug Plan or a portion of the premium for your Medicare Advantage plan with built-in Prescription Drug Plan. This benefit is also subsidized in part by Medicare and starting in 2011, higher income beneficiaries will pay a Part D surcharge in addition to their normal premium.
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Medicare Part B and Part D Income-Related Premium for Higher-Income Beneficiaries
The 2012 Part B monthly premium rates and Part D surcharges to be paid by beneficiaries who file an individual tax return (including those who are single, head of household, qualifying widow(er) with dependent child, or married filing separately who lived apart from their spouse for the entire taxable year), or joint tax return are:
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Beneficiaries who file an individual tax return with income: |
Beneficiaries who file a joint tax return with income: |
Income-related monthly Part B adjustment amount |
Total monthly Part B premium amount |
Part D surcharge |
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Less than or equal to $85,000 |
Less than or equal to $170,000 |
$0.00 |
$99.90 |
$0.00 |
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Greater than $85,000 and less than or equal to $107,000 |
Greater than $170,000 and less than or equal to $214,000 |
$40.00 |
$139.90 |
$11.60 |
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Greater than $107,000 and less than or equal to $160,000 |
Greater than $214,000 and less than or equal to $320,000 |
$99.90 |
$199.80 |
$29.90 |
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Greater than $160,000 and less than or equal to $214,000 |
Greater than $320,000 and less than or equal to $428,000 |
$159.80 |
$259.70 |
$48.10 |
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Greater than $214,000 |
Greater than $428,000 |
$219.80 |
$319.70 |
$66.40 |
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Beneficiaries who are married but file a separate tax return from their spouse: |
Income-related monthly Part B adjustment amount |
Total monthly Part B premium amount |
Part D surcharge |
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Less than or equal to $85,000 |
$0.00 |
$0.00 |
$0.00 |
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Greater than $85,000 and less than or equal to $129,000 |
$159.80 |
$259.70 |
$48.10 |
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Greater than $129,000 |
$219.80 |
$319.70 |
$66.40 |