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Medicare Part B Premiums Are Based on Your Annual Income

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    The vast majority of seniors who qualify for Medicare Part B wind up paying the lowest premium each month (currently $104.90), but if you make too much money in any given year then you should expect to pay a higher monthly premium. This will only apply for the yearly income you make after you enroll in Medicare though, so don't be too worried if you currently make a sizable income and aren't enrolled in Medicare.

    The 2015 Monthly Premium Amounts are:

    $85,000 or less (Individual) $170,000 or less (Joint) = $104.90

    $85,001 up to $107,000 (Individual ) $170,001 up to $214,000 (Joint) = $146.90

    $107,001 up to $160,000 (Individual) $214,001 up to $320,000 (Joint) = $209.80

    $160,001 up to $214,000 (Individual ) $320,001 up to $428,000 (Joint) = $272.70

    Over $214,000 (Individual ) Over $428,000 (Joint) = $335.70

    Another thing you must consider before deciding the best time to sign up for Medicare Part B is that there is a fee if you wait too long to sign up after your eligibility date.

    If you don't enroll in Medicare Part B during your enrollment period (3 months before the month you turn 65, the month you turn 65, and 3 months after the month you turn 65) then you will be hit with a late-enrollment penalty. The penalty is currently 10% of the monthly premium for each full 12-month period that you could have had Part B, but didn’t sign up for it and this penalty will be applied to your monthly premium for as long as you have Medicare Part B.

    So the lesson here is sign up for Medicare Part B within your enrollment period or you could be hit with some serious premium increases. And another lesson to keep in mind is that if you continue to work after signing up for Medicare and make too much money each year then be prepared to pay a higher monthly premium.

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    That makes sense to me. If you are still making over $85,000 a year then you should have to pay a little more than the senior who is living off of their Social Security benefits. I don't think that's too much to ask.
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    What if I am covered by other insurance and did not op for medicare? Will I have to pay more because of that. My wife is younger than I am and had great coverage that covers me. I was told I did not have to apply until after she retires? What is the story?

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    sigmandad Wrote:

    What if I am covered by other insurance and did not op for medicare? Will I have to pay more because of that. My wife is younger than I am and had great coverage that covers me. I was told I did not have to apply until after she retires? What is the story?

    The 10% penalty applies only to yourself if you decide to opt into Medicare Part B along with your wife when she signs up for coverage. That is as long as your wife signs up for Medicare Part B within the seven month window of her 65th birthday. But CMS will apply a penalty of 10% of the monthly premium for each full 12-month period that you could have had Part B to yourself when/if you sign up for Medicare Part B.