Medicare for Higher Income


  • Medicare for Higher Income

For individuals whose Medicare Part B started in December 2016 and continuing through 2018, the standard Part B premium will be $134.00 (or higher depending on your income).

However, most people whose Medicare Part B AND Social Security checks began in November of 2016 or earlier, will pay less than $134.00 due to the “hold harmless” provisions. Social Security will tell you the exact amount you will pay for Part B.

You’ll pay the standard premium of $134.00 if:

You enroll in Part B any time in after December of 2016 through 2018

You don't get Social Security benefits.

You're billed directly for your Part B premiums.

You have Medicare and Medicaid, and Medicaid pays your premiums.
(Your state will pay the standard premium amount of $134.)

You’ll pay more than the standard premium of $134.00 if:

Your modified adjusted gross income (MAGI) as reported on your IRS tax return from 2016 is above a certain amount. If so, you’ll pay the standard premium amount plus an Income Related Monthly Adjustment Amount (IRMAA). IRMAA is an extra charge added to your Part B premium and Part D drug premium. The chart below shows how Medicare Part B & D premiums will be increased in all states including Colorado for high income earnings.

The "look back" is two years so your 2018 premium is based on your MAGI income from 2016.

2018 Nationwide Medicare Part B & Part D Premiums (including Colorado)

Individual Tax Return

Joint Tax Return

For Part B:

You Pay

Part D Drug Surcharge:

2016 income is less than or equal to $85,000

2016 income is less than or equal to $170,000

$134.00

No high income surcharge

2016 income is $85,000 - $107,000

2016 income is $170,000 - $214,000

$187.50

$13.00 + plan premium

2016 income is $107,000 - $133,500

2016 income is $214,000 - $267,000

$267.90

$33.60 + plan premium

2016 income is $133,500 - $160,000

2016 income is $267,000 - $320,000

$348.30

$54.20 + plan premium

2016 income is greater than $160,000

2016 income is greater than $320,000

$428.60

$74.80 + plan premium

NOTE: The 2018 income brackets have changed and have been compressed. See the 2017 income brackets below for comparison.

2017 Nationwide Medicare Part B & Part D Premiums (including Colorado)

Individual Tax Return

Joint Tax Return

For Part B:

You Pay

Part D Drug Surcharge:

2015 income is less than or equal to $85,000

2015 income is less than or equal to $170,000

$134.00

No high income surcharge

2015 income is $85,000 - $107,000

2015 income is $170,000 - $214,000

$187.50

$13.30 + plan premium

2015 income is $107,000 - $160,000

2015 income is $214,000 - $320,000

$267.90

$34.20 + plan premium

2015 income is $160,000 - $214,000

2015 income is $320,000 - $428,000

$348.30

$55.20 + plan premium

2015 income is greater than $214,000

2015 income is greater than $428,000

$428.60

$76.20 + plan premium


Money Saving Tip:
If a retiree's current income is lower than the most-recent tax return, they may be eligible to appeal a Medicare premium surcharge — but only if the income drop is the due to specific life-changing events such as death of a spouse, divorce, marriage or retirement. If that is the case, clients should immediately respond to the premium surcharge notice, known as an income-related monthly adjustment amount (IRMAA) letter they receive in the fall, and follow the instructions on how to appeal the surcharge.