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Managing Medicare Part B Premium Increases

QI have my Medicare Part B premiums paid automatically from my Social Security benefits, and until now we have been stable by a sustenance that keeps reward increases during a same turn as a prior year’s cost-of-living increase. As a result, my monthly premiums were only $104.90 in 2016, a same as in 2015. But we recently perceived a notice from Medicare that my monthly premiums will burst to $187.50 in 2017. Why do we have to compensate that many more? Is there anything we can do to cgange a reward increase?


As we say, many people who have their Medicare premiums deducted from their Social Security advantages are stable by a hold-harmless sustenance and paid only $104.90 per month in 2016 for Medicare Part B. Their premiums will arise in 2017 formed on a 0.3% cost-of-living boost in Social Security benefits, ensuing in monthly normal premiums of $109. See Retirees to Pay More for Medicare in 2017.

SEE ALSO: 11 Costly Medicare Mistakes

But even if your premiums are paid from your Social Security benefits, if your mutated practiced sum income in 2015 was some-more than $85,000 for singular filers or $170,000 for married couples filing jointly, we won’t be stable by a hold-harmless sustenance – and you’ll have to compensate a high-income surcharge. Monthly Part B premiums are $187.50 per chairman for singular filers who warranted $85,001 to $107,000 and married couples who warranted $170,001 to $214,000. The high-income surcharge gradually rises formed on income, commanding out during $428.60 per month for singular filers who warranted some-more than $214,000 in 2015 and married couples who warranted some-more than $428,000. See Part B Costs during for a full list of “Income-Related Monthly Adjustment Amounts,” that is a central tenure for a high-income surcharge.

The mutated practiced sum income Medicare uses to establish your premiums is your AGI and tax-exempt seductiveness income. Even if we haven’t warranted some-more from working, your mutated AGI can boost underneath certain circumstances. Among them: You had taxable income from a grant or withdrawals from tax-deferred retirement savings, such as normal IRAs and 401(k)s (but not Roths); we converted a normal IRA to a Roth; we had taxable income from investments, including metropolitan bond interest.


Medicare generally bases 2017 premiums on 2015 income given that is a final taxation lapse on file. If your income has decreased given afterwards given of certain life-changing events, such as marriage, divorce, genocide of a associate or retirement, we can ask a supervision to bottom your premiums on more-recent income. You’ll need to record Form SSA-44 with a Social Security Administration to yield support of a life-changing event, such as a minute from your former employer saying that you’re now retired. For some-more information, see Medicare Premiums: Rules for Higher-Income Beneficiaries.

If we didn’t knowledge a life-changing eventuality though your income was scarcely high given of a one-time income boost — such as a large taxable withdrawal from a normal IRA — afterwards your premiums should go down for 2018 if your 2016 income falls next a boundary for a surcharge.

SEE ALSO: Financial Decisions You’ll Regret in Retirement

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