Medicare Part B Monthly Premium 2014
Good news! The Medicare Part B rates for 2014 did not increase, and are the same as in 2013. Neither the monthly premium nor the annual deductible has gone up. In 2014, most people pay $104.90 each month as Part B premium, plus $147 per year for their Part B deductible.
If you received lately one of those emails announcing that, due to “Obamacare”, the Medicare Part B premiums will rise in 2014, don’t be scared. This information is incorrect and is not backed up by any facts.
Who Has To Pay Medicare Part B Premiums?
When you join a Medicare advantage plan you need to continue to pay your monthly premiums for your Medicare Part B coverage directly to Medicare. How much you have to pay for your Part B plan depends on you annual household income and tax filing status.
You may have to pay more, if you did not enroll in Part B when you first were eligible (a late enrollment penalty will be added each month to your premium), or if your income is above a certain amount. If you filed an individual tax return last year and reported income over $85,000 ($170,000 for a joint return), you will have to pay a higher premium. If your reported taxable income (the most recent tax return information provided to Social Security by the IRS) was more than $214,000 for single filers, or $428,000 for joint tax payers, you are required to pay the maximum Part B premium of $335.70 per person. If you have to pay a higher Part B premium because of your income, you should be notified by Social Security.
How Are Medicare Part B Premiums Determined?
The formula for the calculation of the standard premium was developed in 1965, when Medicare first went into effect. At this time, the monthly premium for Part B was only $3.00. The current rate is determined each year, depending on the level of costs for Medicare health related expenses in the previous year.
The official formula for determining Part B premiums was established by Congress decades ago. The standard premium amount for each year is calculated on the level of Medicare health care costs of the previous year. From 2010 to 2020, health care costs are expected to increase by 5.8 percent each year, because of increasing use and rising costs of health care services.
The calculation of Medicare premiums in not affected by the Affordable Care Act. However, the ACA includes regulations on reducing the rate of Medicare costs over time.
For the detailed Part B premiums by income, visit http://www.medicare.gov/your-medicare-costs/part-b-costs/part-b-costs.html.
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