How Much is Medicare for Part B?
Cost of Medicare Part B
Medicare Part A is free for most people.
If you elect to choose Part B as well, then you’ll have to pay a monthly premium.
If you are already collecting benefits from the Social Security Administration, the Railroad Retirement Board or the Office of Personnel Management, then your Part B premium will automatically be deducted from your monthly benefits.
If you are not receiving any of these forms of income, then you will get a bill.
How is My Medicare Part B Cost Calculated?
Most people will pay the standard premium amount.
If your modified adjusted gross income is above a certain amount, you may pay an Income Related Monthly Adjustment Amount (IRMAA).
Medicare uses the modified adjusted gross income reported on your IRS tax return from 2 years ago.
This is the most recent tax return information provided to Social Security by the IRS.
Income Related Monthly Adjustment Amount (IRMAA)
The standard Part B premium amount in 2020 is $144.60.
Most people pay the standard Part B premium amount.
If your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a certain amount, you’ll pay the standard premium amount and an Income Related Monthly Adjustment Amount (IRMAA).
IRMAA is an extra charge added to your premium.
Part B Deductible and Coinsurance
In 2020, you pay $198 for your Part B deductible.
After you meet your deductible for the year, you typically pay 20% of the Medicare-approved amount for the following supplies and services:
- Most doctor services (including most doctor services while you’re a hospital inpatient)
- Outpatient therapy
- Durable medical equipment (DME)