You might be surprised that Medicare has monthly costs whenever you first apply. Many seniors believe Medicare is free, which is false. Medicare has costs, such as premiums, deductibles, and copayments. However, Medicare Supplements, such as Plan G, can help cover your deductibles and copays. You can read reviews for Plan G here: boomerbenefits.com/medicare-plan-g-reviews
Now, there are income limits that can affect your monthly Medicare premiums. But what are the income limits for Medicare 2022? Keep reading to learn how your income can affect your Medicare premiums.
Income limits for Medicare Part A
Medicare Part A’s monthly premium is not based on your income. Instead, it’s determined by your work history. If you or your spouse of one year has worked in the U.S. and paid FICA taxes for ten years, 40 quarters, you won’t pay anything for Part A. In this case, your monthly Part A premium is $0. The FICA taxes you paid funded your Part A premium.
If you don’t have 40 quarters, but you have 30-39 quarters, you will pay a premium of $274 per month in 2022. If you have less than 30 quarters, you must pay the total cost of Part A, which is $499 per month in 2022.
Are there income limits for Medicare Part B?
There are income limits with Medicare Part B, and if you make a high income, you will pay more monthly for Medicare Part B. The standard Part B premium in 2022 is $170.10 per month, and most people pay this amount. However, the Social Security looks at your modified adjusted household gross income (MAGI) from two years before you apply for Medicare. For instance, if you apply for Medicare in 2023, Social Security will look at your 2021 tax returns. If they find that you were in a high-income tax bracket, you will pay more for Part B.
The extra charge you will pay on top of your Part B premium is an Income Related Monthly Adjustment Amount (IRMAA). The cost of IRMAA depends on which of the seven tax brackets you fall into. If you filed an individual tax return and made $91,000 or less, you will pay the standard $170.10 monthly premium. But, if you earned above $91,000, you would pay an IRMAA fee until the Social Security finds a change in your income at the beginning of next year.
The income limits are different for those who filed their taxes jointly. If you filed a joint tax return and made $182,000 or less, you will pay the standard Part B premium. But those who made more than $182,000 will pay an IRMAA fee.
How much is Medicare Part D?
The average Part D premium is $33 per month in 2022. However, private insurance carriers sell Part D plans. So, the premiums vary from carrier to carrier. But, just like Part B, if you are in a high-income tax bracket, you will pay an IRMAA fee on top of your Part D premium.
What are the income limits for Medicare supplemental plans?
Luckily, there are no income limits for Medicare Supplement and Medicare Advantage plans. The private insurance carrier you purchase a plan from will determine and set your monthly premiums, but your income will not affect it.
You must stay enrolled in Medicare Part A and Part B whenever you’re enrolled in one of these plans. So, if you are subject to IRMAA, you will continue to pay the IRMAA fee on top of your Part B and Part D premiums.
Let’s say you have had a life-changing event that has affected your income, and you no longer make the same amount of money you did two years ago. For example, retirement, death of a spouse, or loss of income-producing property can qualify you for an IRMAA appeal. You will submit form SSA-44 to the Social Security office and proof of a change of income. If the Social Security office approves your IRMAA appeal, you will see a difference in your Part B and Part D premiums.
Although there aren’t income limits for Part A, Medicare Supplements, or Medicare Advantage plans, there are income limits for Part B and Part D. Want to learn more about Medicare costs and IRMAA? Visit Medicare.gov, or contact a reputable Medicare brokerage.