MEDICARE PREMIUMS, DEDUCTIBLES FOR 2011
Enrollees in Medicare Part D prescription drug plans pay premiums that vary from plan to plan depending on each plan’s efficiency and scope of benefits. Beginning in 2011, the Affordable Care Act requires Part D enrollees whose incomes exceed the same thresholds that apply to higher income Part B enrollees to pay a monthly adjustment amount. These enrollees will pay the regular plan premium to their Part D plan and will pay the income-related adjustment to Medicare. The 2011 Part D income-related monthly adjustment amounts to be paid by beneficiaries who file an individual tax return (including those who are single, head of household, qualifying widow(er) with dependent child, or married filing separately who lived apart from their spouse for the entire taxable year), or who file a joint tax return are shown in the following table:
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Beneficiaries who file an individual tax return with income:
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Beneficiaries who file a joint tax return with income:
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Income-related monthly adjustment amount
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Less than or equal to $85,000
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Less than or equal to $170,000
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$0.00
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Greater than $85,000 and less than or equal to $107,000
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Greater than $170,000 and less than or equal to $214,000
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$12.00
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Greater than $107,000 and less than or equal to $160,000
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Greater than $214,000 and less than or equal to $320,000
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$31.10
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Greater than $160,000 and less than or equal to $214,000
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Greater than $320,000 and less than or equal to $428,000
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$50.10
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Greater than $214,000
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Greater than $428,000
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$69.10
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In addition, the income-related monthly adjustment amounts to be paid by Part D beneficiaries who are married, but file a separate return from their spouse and lived with their spouse at any time during the taxable year are as follows:
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Beneficiaries who are married and lived with their spouse at any time during the year, but file a separate tax return from their spouse:
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Income-related monthly adjustment amount
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Less than or equal to $85,000
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$0.00
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Greater than $85,000 and less than or equal to $129,000
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$50.10
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Greater than $129,000
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$69.10
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As noted above, states have programs that pay some or all of beneficiaries’ Part A and Part B premiums and coinsurance for certain people who have Medicare and a limited income. Similarly, Part D beneficiaries with limited income and assets are eligible for Federal subsidies to reduce their premiums and coinsurance.
