2012 MEDICARE PART B PREMIUMS

The Center for Medicare and Medicaid Services (CMS) has announced the new monthly Medicare Part B premiums for 2012, which are deducted from Social Security benefits.  Click here for the complete Fact Sheet on 2012 Medicare premiums and deductibles.

“The standard Medicare Part B monthly premium will be $99.90 in 2012, a $15.50 decrease over the 2011 premium of $115.40.  However, most Medicare beneficiaries were held harmless in 2011 and paid $96.40 per month. The 2012 premium represents a $3.50 increase for them.”

Under the “Drug, Improvement and Modernization Act of 2003” if a Social Security beneficiary’s “modified adjusted gross income”, which includes tax-exempt municipal bond income, is greater than legislated threshold amounts ($85,000 in 2012 for a beneficiary filing an individual income tax return or married and filing a separate return, and $170,000 for a beneficiary filing a joint tax return) the monthly Part B premium is increased.  Below is a chart of the income-based increases, based on MAGI for tax year 2010 – 

Beneficiaries who file an individual tax return with income:	Beneficiaries who file a joint tax return with income:	Part B income-related monthly adjustment amount	Total monthly Part B premium amount
Less than or equal to $85,000	Less than or equal to $170,000	$0.00	$99.90
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
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
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
Greater than $214,000	Greater than $428,000	$219.80	$319.70