Advanced Underwriting Consultants

Question of the Day – October 24

Ask the Experts!

The professionals at Advanced Underwriting Consultants (AUC) answer the tax and technical questions posed by producers.  Here’s the question of the day.

Question:  How is the Medicare Part B premium determined for high income taxpayers?

Answer:  See the chart below from the Social Security website that shows the Medicare Part B premium based on single or married filing jointly taxpayers’ modified adjusted gross income.

The ssa.gov website indicates that in general the Social Security Administration consults the taxpayer’s most recent tax return to determine the premium that must be paid in a given calendar year.  For calendar year 2012 premiums, that most likely means the 2010 income tax return.

The standard Part B premium for 2012 is $99.90. If you are single and filed an individual tax return, or married and filed a joint tax return, the following chart applies to you:

Modified Adjusted Gross Income (MAGI) Part B monthly premium amount Prescription drug coverage monthly premium amount
Individuals with a MAGI of $85,000 or less
Married couples with a MAGI of $170,000 or less

2012 standard premium=$99.90

Your plan premium

Individuals with a MAGI above $85,000 up to $107,000
Married couples with a MAGI above $170,000 up to $214,000

Standard premium + $40.00

Your plan premium + $11.60

Individuals with a MAGI above $107,000 up to $160,000
Married couples with a MAGI above $214,000 up to $320,000

Standard premium + $99.90

Your plan premium + $29.90

Individuals with a MAGI above $160,000 up to $214,000
Married couples with a MAGI above $320,000 up to $428,000

Standard premium + $159.80

Your plan premium + $48.10

Individuals with a MAGI above $214,000
Married couples with a MAGI above $428,000

Standard premium + $219.80

Your plan premium + $66.40

Have a question for the professionals at AUC?  Feel welcome to submit it by email.  We may post your question and the answer as the question of the day.