The standard Medicare Part B monthly premium will be $93.50 in January 2007, an increase of $5.00 from the 2006 premium of $88.50. All beneficiaries currently pay the same basic premium amount for Medicare Part B, which is set annually at a level that covers 25 percent of the estimated Part B program costs for the year. The Government has subsidized the remaining 75 percent for all beneficiaries.
This 75-percent subsidy will decrease for those making over $80,000 a year beginning in 2007. As a result of a new Medicare law, the Part B monthly premiums for some beneficiaries will be greater beginning in 2007, depending on a beneficiary’s or married couple’s modified adjusted gross income. The income-related Part B premiums for 2007 will be $105.80, $124.40, $142.90, or $161.40, depending on the extent to which an individual beneficiary’s income exceeds $80,000 (or a married couple’s income exceeds $160,000), with the highest premium rates only paid by beneficiaries whose incomes are over $200,000 (or $400,000 for a married couple). The income thresholds will increase annually by indexing to the consumer price index (CPI). The Centers for Medicare & Medicaid Services estimates that about 4 percent of Medicare beneficiaries with Part B will pay higher Part B premiums based on their incomes. The Social Security Administration (SSA) is responsible for all income-related monthly adjustment amount determinations.
To make the determinations, SSA will use the most recent tax return information provided by the IRS. For 2007, in most cases that will be the beneficiary’s 2005 tax return information. If that information is not available, SSA will use information from the 2004 tax return.
Subscribe to:
Post Comments (Atom)
1 comment:
My grievance with the means testing of medicare part B is that it amounts to blatent discrimination against the so called wealthy. Why should all seniors who make less than $180K for married and $80K for singles pay the same amount while only charging more (up to three times as much!) to those who make above $80K or $180K? For example, why is it ok for a couple making $180K to pay the same amount as a couple who makes only $10K? Where is the fairness in that, if you are a proponent of means testing? The current legislation amounts to selective economic discrimination and should be considered illegal. I believe congress should charge everyone more or keep the rate the same for everyone.
Post a Comment