Higher Income Seniors to Pay Higher Medicare Premiums
Monday September 11, 2006
Beginning in 2007 Medicare beneficiaries who earn more money will pay higher premiums for their Medicare Part B coverage. A provision of the 2003 Medicare Modernization Act calls for a change in the formula for assessing Part B premiums. The Part B premium has been based on Medicare covering 75% of the premium costs and the beneficiary paying for 25%. With the changes, higher income beneficiaries will pay a higher percentage of premium costs. For those making more than $80,000 (single) or $160,00 for couples the percentage of the premium will increase to 28.3 % in 2007, 31.6% in 2008 and 35% in 2009. Those beneficiaries with even higher incomes will see large percentage increases.