Premiums for Medicare Part B are based upon your modified adjusted gross income (MAGI) from 2 years ago; since this is the most recent tax return information provided to Social Security by the IRS. Items that contribute to your MAGI include: wages, interest, required minimum dividends from investments, capital gains, Social Security benefits, and tax-deferred pensions.
The Medicare Part B premium for 2020 is $144.60 for those who are:
- Not collecting Social Security benefits
- Enrolled in Part B for the first time in 2018
- Part B premiums are paid by Medicad
For the most part, you will pay the standard Part B premium. However, if your income is over $87,000 (single) or $174,000 (married couple), then you may pay an Income Related Monthly Adjustment (IRMAA).
Your Part B premium will automatically be deducted from your benefit payment if you receive any of the following benefits:
- Railroad Retirement Board
- Social Security
- Office of Personnel Management
Is there anything else for Part B that I have to pay for besides the monthly premium?
The Medicare Part B deductible for 2020 is $198. After you met your deductible, Medicare pays 80% of any Part B approved services. You are responsible for paying the remaining 20%. Medicare Part B covers the most frequently used services such as:
- Most doctor services such as doctor visits, lab tests, x-rays, and other services received outside of the hospital
- Outpatient Therapy
- Durable Medical Equipment (DME)
One very important thing to remember is there is no cap on your out-of-pocket costs under Medicare Part B, which means if your total bill was $100,000, you would owe $20,000 or more as the bill rises.
See the chart below to find out what your premium will be in 2020.