2021 Premiums Part A: No fee for the majority of beneficiaries*
Part B: $148.50 monthly for 2021 (automatically deducted from Social Security benefit payments). Individuals with an annual income of more than $88,000 pay a higher premium.
Part C (Medicare Advantage): $148.50 monthly for the Part B premium for 2021, plus any additional premium set by the insurer.
Part D prescription drug plan: Premium varies by plan, averages $30.50 monthly for 2021.
Medigap: Amount varies by plan and extent of coverage. *A small number of beneficiaries (who didn’t pay enough Medicare taxes during their working years) must pay a $471 monthly premium. IRMAA-income related Monthly Adjustment Amount An IRMAA is a surcharge added to your monthly Medicare Part B and Part D premiums, based on your yearly income. The Social Security Administration (SSA) uses your income tax information from 2 years ago to determine if you owe an IRMAA in addition to your monthly premium.
IRMAA Reconsideration High earner taxes can effect both B & D premiums but if you've had a life change that reduces your income you may be a good candidate for reconsideration of premiums. Examples include:
work stoppage or reduction of hours
marriage, divorce or being widowed
the loss of income-producing property
changes or termination of a pension
receipt of a settlement from an employer due to company closure or bankruptcy