Does Everyone Pay the Same for Medicare Part B?

Medicare Part B is one part of Medicare. Medicare Part B helps beneficiaries pay for services received from doctors, outpatient hospital care, physical and occupational therapy and some home health care. A person is eligible for Medicare Part B when he turns 65, uses disability benefits or has end-stage renal disease. In most cases, a beneficiary pays for Medicare Part B coverage.

General Costs

• The Department of Health and Human Services determines the monthly premium for Medicare Part B. A number of beneficiaries have their monthly premium subsidized by the government and only pay 25 percent of the monthly premium. In 2007, the government enacted higher premium payments for individuals who report more than $85,000 in yearly income ($170,000 for married couples) at a rate of 35 percent, 50 percent, 65 percent or 80 percent of the total cost for Medicare Part B. The current premium in this situation is determined based on reported income taxes from two years ago.

Additional Costs

• Outside of the standard Medicare Part B premium or the adjusted premium based on income taxes, a beneficiary might need to pay an additional 10 percent for each 12-month period the beneficiary did not enroll in Medicare Part B even though she was eligible. This additional 10 percent for each 12-month period is enforced as long as the beneficiary has Medicare Part B.

  The additional 10 percent can be waived if the beneficiary did not enroll in Medicare Part B because he is currently working or if his spouse is still working. Once the beneficiary or spouse stops working, enrollment is expected for Part B during the general enrollment period from Jan. 1 through March 31 of each year.

Monthly Premium Charges

• At the end of each year, Social Security will send a notice about the new premium payment for the next year. If the beneficiary thinks the premium is incorrect, an appeal can be requested.

Method of Payment

• The Medicare Part B premiums are deducted from the beneficiary's monthly Social Security, railroad retirement or civil service retirement check. If the beneficiary does not receive checks, a bill for three months of premiums is sent to the beneficiary. The bill is sent out by the 10th of every month.

Need To Know

• A person is eligible for Medicare Part B at age 65 even if he is not at retirement age. To avoid additional costs, enroll in Medicare Part B between three to 10 months before turning 65, if eligible.

  To apply for Medicare, call [phone], or visit a local Social Security office.