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)
How Much Is Medicare for Part B FAQs
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.