Who Pays More for Medicare Part B and Why?

Most Medicare beneficiaries pay the standard Part B premium, but some people end up paying higher premiums due to income-related adjustments. If you're wondering whether you might fall into this category — or how to avoid unexpected costs — here’s what you need to know.

💡 1. What Is Medicare Part B and What Does It Cover?

Medicare Part B covers outpatient services, including:

✅ Doctor visits and preventive care
✅ Outpatient medical procedures
✅ Durable medical equipment (DME)
✅ Lab tests and imaging
✅ Chemotherapy, dialysis, and other essential treatments

While Part B offers critical coverage, it comes with monthly premiums, which are higher for some enrollees based on income.

📈 2. What Is the Standard Part B Premium?

In 2025, the standard Part B premium is expected to be around $185 per month (subject to annual adjustments). This amount is deducted automatically from your Social Security check if you're receiving benefits.

However, if you earn above a certain income threshold, you may have to pay more for Part B due to Income-Related Monthly Adjustment Amounts (IRMAA).

You can check the IRMAA charts through the Social Security Website here.

💸 3. Who Pays More for Part B?

Higher-income Medicare enrollees pay an increased Part B premium based on their Modified Adjusted Gross Income (MAGI), which is reported on their IRS tax return from 2 years ago.

✅ If your MAGI exceeds certain limits, IRMAA kicks in.

🔍 4. How Is Income Determined?

MAGI includes:

• Adjusted Gross Income (AGI)

• Tax-exempt interest income

• Capital gains, dividends, and rental income

The IRS provides this information to Social Security, which then determines whether you’ll pay more for Part B.

📢 5. How to Avoid or Reduce Higher Part B Premiums

✅ Appeal If Your Income Drops: If your income has decreased due to retirement, divorce, or other life events, you can appeal your IRMAA determination.

✅ Review Your Filing Status: If you file jointly, consider how future income changes may affect your Part B costs.

✅ Plan Withdrawals Strategically: Minimize large withdrawals from retirement accounts that could increase your MAGI.

✅ Use Roth IRAs or Tax-Free Investments: Withdrawals from Roth IRAs or health savings accounts (HSAs) do not count toward MAGI.

📄 6. What Happens If You Don’t Pay?

If you fail to pay your higher Part B premiums:

• Your Medicare coverage may be terminated after a grace period.

• You may face a late enrollment penalty if you need to re-enroll later.

🤔 7. Is There Help for Higher-Income Beneficiaries?

Unfortunately, Medicare Savings Programs and Extra Help that assist low-income enrollees are not available for those paying IRMAA. However, careful tax planning and timely appeals can help manage costs.

📝 Final Thoughts: Don’t Be Caught Off Guard

If your income has changed or you’re nearing Medicare eligibility, understanding IRMAA and Part B costs is essential. Riverside Insurance Professionals is here to help you navigate Medicare, compare plan options, and avoid unexpected expenses.

📞 Call 573-535-6044 today to schedule a consultation and explore ways to optimize your Medicare benefits!

Disclaimer:
This content is for informational and educational purposes only and is not intended as legal, financial, or medical advice. While we strive to provide accurate and up-to-date information, Medicare rules, premiums, and guidelines may change. For the most current information, please visit the official Medicare website (www.medicare.gov) or contact a licensed Medicare professional.

Riverside Insurance Professionals is not affiliated with or endorsed by the U.S. government or the federal Medicare program.