Medicare Premiums

• Most Medicare beneficiaries pay a standard monthly premium for their Medicare Part B benefits. For anyone enrolling after Jan. 1, 2011, the premium cost is $115.40 per month. However, if you make more than $85,000 per year as an individual, or $170,000 per year as a couple, your monthly premium is higher. The actual amount of your premium is based on your income as reported on your tax return. The highest base premium, as of 2011, is $369.10 per month, if your individual income is more than $214,000, or $428,000 as a couple. In most cases, your premium is determined by your tax return from two years ago; for example, if you enroll in Medicare Part B in 2011, the Social Security Administration uses your 2009 tax returns to determine your premium. These figures do not take into account any penalties for late enrollment in Medicare.
  
  

Income Reduction Due to Marriage, Divorce or Death

• If your income is reduced due to a marriage, divorce or death of a spouse, you can request a reduction in your Medicare Part B premium. You must provide proof of the change, such as a marriage or death certificate or a divorce decree, as well as proof of your reduced income. To prove your reduced income, you need to provide a copy of your tax return, or an estimate, if you haven't yet filed your taxes.
  
  

Income Reduction Due to Work Change

• You can also request a reduction in your Medicare Part B premium if your income is reduced because you or your spouse has retired, stopped working or have reduced work hours, or if your insured pension has decreased. In this case, you must also show proof of the event leading to your reduced income, as well as tax documents indicating your new income.
  
  

Requesting a Premium Change

• To request a change in your Medicare Part B premium, contact the Social Security Administration as soon as you know there will be a change to your income. Specify that you have new information and that you want to request a new decision about your Income Related Part B premium. The SSA representative will instruct you in how to provide the necessary documentation to prove your income change.