Message Font: Serif | Sans-Serif
No. of Recommendations: 0
AARP recently published a summary of Medicare Part B Premiums that Baby Boomers will begin paying beginning in 2011. There will be 3 "standard" premiums paid in 2011. Those already on Medicare and paying the $96.40 per month since 2009 will continue paying that monthly fee because those fees are frozen due to no CPI increase in 2009 & 2010. Those who started paying Part B in 2010 will pay $110.50 per month because there was a second year of no CPI increases in 2010. However, baby boomers starting to pay Medicare Part B premiums in 2011 will pay $115.40 per month for Medicare Part B. My twin brother & sister were born in November, 1944 and so they are paying Part B premiums of $96.40. However since I was born in August 1946, I will be paying 20% higher monthly premiums of $115.40 in 2011.

But there is another change apparently happening in 2011 that institutes "means testing" in determining Medicare Part B monthly premiums. If my taxable income is more than $85,000 as a single taxpayer or $170,000 filing jointly, I begin paying even higher Part B premiums of $161.50/mo up to a maximum of $369.10/mo. There is a means-testing surcharge for Part D drug coverage too that likewise increases between $12 and $69.10 per month beyond the $85,000 (single) & $170,000 (joint) taxable income limits.

My single adjusted gross income (line 37) is in the high $70's. I am hoping the "taxable income" Medicare is using for its "means testing" is the (line 43) taxable income level which for me is in the high $60's. I would like to know for sure which one Medicare is using if I am going to make any large capital gains that push me over the $85K means-testing, taxable-income limit. Has anyone else been looking into this issue? I am assuming that the $85/170K "taxable income" number would not include muni-bond interest. Will Medicare be adjusting the Part B & Part D monthly premiums each year? If your income varies up and down, year-to-year through these means-testing limits and you are paying Medicare premiums based on the previous year's "taxable" income, this could get complicated.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.