(Source: U.S. Railroad Retirement Board press release, November 1, 2013)
CHICAGO — The standard Medicare Part B monthly premium will be $104.90 in 2014, the same amount as in 2013.
Some beneficiaries will continue to pay higher premiums based on their modified adjusted gross income, but these amounts are also remaining the same as in 2013. The monthly premiums that include income-related adjustments for 2014 will be $146.90, $209.80, $272.70, or $335.70, depending on the extent to which an individual beneficiary’s modified adjusted gross income exceeds $85,000 (or $170,000 for a married couple). The highest premium rate applies to beneficiaries whose incomes exceed $214,000 (or $428,000 for a married couple). The Centers for Medicare & Medicaid Services estimates that less than 5 percent of Medicare beneficiaries pay the larger income-adjusted premiums.
Beneficiaries in Medicare Part D prescription drug coverage plans pay premiums that vary from plan to plan. Beginning in 2011, the Affordable Care Act required Part D beneficiaries whose modified adjusted gross income exceeds the same income thresholds that apply to Part B premiums to also pay a monthly adjustment amount. In 2014, the adjustment amount ranges from $12.10 to $69.30.
The Railroad Retirement Board (RRB) withholds Part B premiums from benefit payments it processes. The agency can also withhold Part C and D premiums from benefit payments if an individual submits a request to his or her Part C or D insurance plan. The RRB collects Part D income-related adjustment amounts, but must bill the enrollee as the agency is currently unable to withhold these amounts from benefit payments.
The following tables show the income-related premium adjustments for 2014. The Social Security Administration (SSA) is responsible for all income-related monthly adjustment amount determinations. To make the determinations, SSA uses the most recent tax return information available from the IRS. For 2014, in most cases that will be the beneficiary’s 2012 tax return information. If that information is not available, SSA will use information from the 2011 tax return.
Those railroad retirement and social security Medicare beneficiaries affected by the 2014 Part B and D income-related premiums will receive a notice from SSA by December 2013. The notice will include an explanation of the circumstances where a beneficiary may request a new determination. Persons who have questions or would like to request a new determination should contact SSA after receiving their notice.
Additional information about Medicare coverage, including specific benefits and deductibles, can be found at www.medicare.gov.
Specialized charts outlining income and benefit thresholds is available at the link above.