2007 Changes : Phasing in the new Part B income-related premium

2007 Changes : Phasing in the new Part B income-related premium

Congress added a surcharge to the 2007 Part B premiums for enrollees with income over $80,000 (for an individual) or $160,000 (for a couple who filed their taxes jointly). Approximately 4% of Medicare enrollees will pay more based on their income.

Medicare has set the surcharges based on 2005 income and IRS filing status (single, married filing jointly, etc.). Those below the threshold will continue to pay a premium that covers 25% of the Part B costs. By 2009, after the 3 year phase-in, the wealthiest enrollees (income over $200,000/year) will pay more than 3 times the basic premium (80% of the Part B costs).

Medicare will notify affected individuals before the end of 2006 about the additional 2007 premium they owe, as well as about any other changes in their Social Security benefits.

Premium for 2007 and estimated premiums for 2008, 2009			$93.50	$100(e)	$110(e)
Individual tax return	Joint tax return	Surcharge	2007	2008	2009
$80,001 to $100,000	$160,001 to $200,000	$12.50	$106.00	$127(e)	$154(e)
$100,001 to $150,000	$200,001 to $300,000	$31.50	$124.70	$165(e)	$220(e)
$150,001 to $200,000	$300,001 to $400,000	$49.90	$143.40	$210(e)	$290(e)
Over $200,000	Over $400,000	$68.60	$162.10	$250(e)	$360(e)