Q & A
How are premium adjustments on Medicare Part B calculated?
Full Question: A recent “Taking Charge” column referred to the standard monthly premium for Medicare Part B (medical insurance) coverage as $104.90. My monthly Part B premium is higher. I also pay a higher premium for my Medicare Part D (prescription drug) plan. I understand that these higher premiums are based on income, but how are they calculated?
Answer: Medicare is the nation’s health insurance program for more than 48 million persons 65 and older, persons younger than 65 who are disabled for more than two years, and persons who have end-stage renal disease. There are more than 188,000 Medicare beneficiaries in Rhode Island. The laws governing Medicare require an “income-related monthly adjustment” for Part B and Part D premiums for those with higher incomes. According to the Social Security Administration, these adjustments affect less than 5 percent of Medicare beneficiaries. Social Security determines your Medicare eligibility and monthly premiums. Read more…
Source: Larry Grimaldi, chief of program development at the Rhode Island Department of Human Services, Division of Elderly Affairs, via Providence Journal – 8/25/2014
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