Medicare Part B Premiums

What Are Medicare Part B Premiums?

Medicare Part B premiums are monthly fees that Medicare beneficiaries pay for insurance that covers medically necessary services and preventive services that aren't covered by Medicare Part A. Part B covers things like ambulance services, doctor visits, lab work, and medical equipment. By contrast, most people don't have to pay a premium for Medicare Part A.

Understanding Medicare Part B Premiums

Medicare is a U.S. federal health program that is divided into two main parts, A and B. Part A covers a large portion of hospital-related costs for eligible people age 65 and over and only includes medically necessary and skilled care, not custodial care. It can include hospital stays, hospice, and skilled nursing facilities.

Part B is optional and pays a portion of nonhospital-provided medical care, such as doctor visits and other outpatient services. Part B also covers preventive services, ambulance services, mental health costs, and durable medical equipment.

There is a monthly fee for this program; the premium depends on your modified adjusted gross income (MAGI) as reported on your federal tax return from two years ago. So, for example, you would use your 2019 income to determine your 2021 premiums.

Medicare Part B Costs for 2021

Individuals

Married Filing Jointly 

Married Filing Separately 

Monthly Fee for 2021

$88,000 or less

$176,000 or less

$88,000 or less

Above $88,000 up to $111,000

Above $176,000 up to $222,000

Above $111,000 up to $138,000

Above $222,000 up to $276,000

Above $138,000 up to $165,000

Above $276,000 up to $330,000

Above $165,000 and less than $500,000

Above $330,000 and less than $750,000

Above $88,000 and less than $412,000

$500,000 and above

$750,000 and above

$412,000 and above

Source: Medicare.gov. Note: Use income from two years ago to determine your premium.

Part B coverage has a deductible of $203 in 2021. After you meet the deductible, you typically pay 20% of the Medicare-approved amount for covered services. This is known as coinsurance. Medicare helps individuals when they may have serious health problems but lack funding for treatment.

Eligibility for Medicare Part B

In general, Medicare is available to U.S. citizens and permanent legal residents who:

When you are first eligible for Medicare, you have a seven-month Initial Enrollment Period to sign up for Part A and/or Part B. If you're eligible when you turn 65, you can sign up during the seven-month period that:

If you don't sign up for Part B when you are first eligible for it, you could be stuck paying a late enrollment penalty of 10% for each 12-month period when you could have had Part B but didn't enroll in it. However, you may choose to delay enrolling in Part B if you already have health coverage. Check Medicare's website to find out more.

Medicare Part C

Medicare Part C — also called Medicare Advantage — is offered by private companies approved by Medicare. If you participate in a Medicare Advantage Plan, the plan provides all of your Part A and Part B coverage, and it may provide extra coverage for things like vision, hearing, and dental. Unlike some private health insurance plans, such as Medigap, most Medicare Advantage plans also include Medicare Part D (prescription drug) coverage.

As is the case with any private health insurance policy, it's crucial to consider every insurer carefully in order to acquire the best Medicare Advantage Plan for your needs.

Medicare Part D

Medicare Part D prescription drug coverage is an optional benefit offered to anyone who has Medicare. If you choose not to get Medicare Part D coverage when you're first eligible, you may owe a late enrollment penalty if you join later, unless you have had other creditable prescription drug coverage, such as that which your employer or spouse's employer may provide.

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