What Is Considered Low Income for Seniors on Medicare?

Medicare provides health insurance for senior citizens who have paid Medicare tax while working. Medicare coverage starts at age 65, unless you have a disability and receive Social Security disability benefits. Although Medicare benefits are not based on income, your income might determine how much you pay in Medicare premiums every month.

Medicare and Income

• Whether you have high or low income, as long as you paid Medicare tax, you are eligible to enroll in Medicare. Medicare consists of four types of coverage: Part A, Part B, Part C and Part D. Medicare Part A is hospital insurance, premium-free. Although you must pay for the other types of Medicare coverage, enrollment in these programs requires enrollment in Part A. If the Social Security Administration considers you to have high income, you may pay higher premiums than people with low income. Your income may consist of your job income, if you are still working, or retirement benefits and other payments you receive.

Income Guidelines

• For Medicare purposes, low income is defined as anything below the limit that determines whether you pay higher premiums or not. If your income is lower than this limit, you only pay the regular premiums, and you are considered to have low income. However, if your income exceeds this limit, you are considered to have high income, and you must pay higher premiums. As of 2011, low income for Medicare is anything below $87,000 if you file an individual tax return and below $170,000 if you file a joint tax return.

Premium Increase

• Only Part B and Part D premiums can increase according to your income level. Medicare Part B is medical insurance, and it has a standard premium for all Medicare members with low income. Part B standard premium increases by the same amount for all members with high income. Part D premiums are variable, since the premium you pay varies according to the plan and coverage you choose. When you have high income, you pay your Part D plan premium plus the additional amount that varies according to your income level.

Premiums

• If your income is equal to or lower than $87,000 if you are single or $170,000 if you are married, you pay $115.40 for Part B and a Part D normal premium. If your income is higher than this but lower than $107,000 (single) or $214,000 (married), you pay $161.50 for Part B and the Part D premium plus $12. If your income is higher than $107,000 and lower than $160,000 (single) or higher than $214,000 and lower than $320,000 (married), you pay $230.70 for Part B and your Part D premium plus $31.10. If your income is higher than $160,000 and lower than $214,000 (single) or higher than $320,000 and lower than $$428,000 (married), you pay $299.90 for Part B and Part D premiums plus $51.10. If your income is higher than $214,000 (single) or higher than $428,000 (married), you pay $369.10 for Part B and Part D premiums plus $69.1.